Independent Marketers Face Petrol Supply Challenges Due to Pricing Disparity, Says PENGASSAN

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has explained why independent marketers are unable to source petrol directly from the Dangote Refinery.

Speaking at a press conference in Lagos on Tuesday, PENGASSAN president Festas Osifo attributed the issue to a price discrepancy between the rates at which the Nigerian National Petroleum Company Limited (NNPCL) purchases petrol and the prices it offers to independent marketers.

Osifo stated that NNPC may buy petrol at roughly N950 per litre but sell it to independent marketers at around N700, resulting in a significant deficit that the NNPC has to cover.

He added that major marketers, who can purchase directly from Dangote at a rate similar to NNPCL’s, would need to sell it at a much higher price, possibly exceeding N1,000 per litre.

Independent marketers, he noted, prefer to source their petrol from NNPCL to benefit from the lower pricing.

Osifo also highlighted that some crude oil supplies are tied to loan repayments, limiting the amount available for local use.

He warned that the ongoing trend of International Oil Companies (IOCs) divesting from Nigeria presents both risks and opportunities, including the possibility of reduced foreign investment and production levels.