Management of Dangote Refinery has confirmed Premium Motor Spirit (PMS) also called petrol purchase deal with key petroleum marketers.
In a telephone conversation with group chief branding and communications officer of Dangote Group, Anthony Chiejina,confirmed to LEADERSHIP Weekend that key marketers have been buying petrol from the facility, but refused to speak on pricing.
Though Chiejina did not name the companies involved in the deal he said the supply had commenced for a period now.
Also as a way of confirming the development, the Major Energies Marketers Association of Nigeria (MEMAN), in response to the current market pressure, said it has significant stocks of products in its tanks.
The Association also said it has access to significant stocks of products in the tanks of its suppliers including Dangote Refinery and NNPC Trading Limited and a clear line of sight on future supplies for all petroleum products.
The clarification is coming following perceived tightness in the petroleum supply market.
According to a report, Dangote Refinery and Petrochemical Company Ltd is selling petrol to oil marketers at 1,014.75 per litre.
The N1,014 75 per litre price sold by Dangote to oil marketers is broken down into two major cost components.
Based on the component, Dangote pegged petrol at N990 per litre with an additional variation cost of 2.5 per cent, which amounted to N24.75 per litre.
The high price of petrol from Dangote Refinery contradicted expectations from Nigerians that the “crude-for-Naira” deal between the federal government and Dangote Refinery would reduce pump prices starting October 1, 2024.
Last month reported how independent oil marketers adjusted the pump price of petrol to reflect the price at which they bought the product from Dangote Refinery and Petrochemical Company.
Also, many filling stations had adjusted their pump price of petrol to an average of N1,200 per litre.
Meanwhile the MEMAN noted that the benefit of diversification of supply and deregulation is that diligent marketers can plan and book in advance for their supply needs and make adequate adjustments and alternative arrangements in advance to avoid product outages. MEMAN does not envisage any outages of petroleum products in the immediate future or in the near term.
“We urge the public not to panic-buy petroleum products, as our supply efficiency continues to improve, and logistics optimisation begins to set in.
“MEMAN members shall continue to do all within their power to optimise their supply and logistics costs and efficiency to ensure the highest level of availability, accessibility and affordability for their customers in the increasingly competitive environment.” it said in a statement.
