By 9jaeye 
On Wednesday, the Independent Petroleum Marketers Association of Nigeria (IPMAN) clarified why its members have not yet begun sourcing fuel from the Dangote Refinery, citing concerns over pricing. According to John Kekeocha, IPMAN’s National Welfare Officer, Dangote’s locally refined fuel currently costs more than imported fuel, which directly impacts independent marketers and consumers alike. This disparity has raised questions among stakeholders who had expected that domestically refined fuel would be more affordable and accessible.
Kekeocha explained on Channels Television’s The Morning Brief program that independent marketers were hopeful that Dangote’s production would lower prices across Nigeria, especially given the country’s reliance on imported fuel for decades. However, he pointed out that if the price of Dangote’s fuel remains higher than imported alternatives, there is little incentive for IPMAN members to switch suppliers. “If NNPC can sell Dangote products higher than imported products, then it doesn’t make sense,” Kekeocha stated, calling for a pricing model that reflects the logistical advantages of domestic production.
Dangote’s Challenges with Local Crude Oil Access
The Dangote Group has responded to these concerns, citing the high costs associated with sourcing crude oil. Representatives from Dangote explained that International Oil Companies (IOCs) have offered local crude at prices above the global market rate, forcing the refinery to rely on more expensive imports. Without access to competitively priced local crude, Dangote has had to import crude from the U.S., which has significantly raised production costs and, consequently, the price of refined products.
IPMAN’s Call for Competitive Pricing
IPMAN maintains that achieving fair pricing is essential for the success of the Dangote Refinery and Nigeria’s push toward energy self-sufficiency. As discussions between IPMAN, the Nigerian National Petroleum Company Limited (NNPCL), and Dangote continue, the association hopes that adjustments in pricing and supply chains will soon make Dangote’s fuel more economically viable. For now, IPMAN urges Dangote to finalize partnership discussions with its members, emphasizing that competitive pricing is necessary to secure the confidence of Nigerian consumers and foster a sustainable fuel market.
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