Dangote Refinery Partners Marketers to Boost Petrol Supply, Details Emerge
- Dangote Refinery partnered with fuel marketers to improve supply distribution and reduce single-source risks
- MEMAN said the arrangement enhances efficiency and was developed in consultation with regulators
- Experts stress that allowing fuel imports is essential to maintain competition and prevent price control risks
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Dangote Petroleum Refinery has partnered with major fuel marketers to improve nationwide fuel supply and reduce risks linked to relying on a single source, the Major Energies Marketers Association of Nigeria (MEMAN) has said.
Source: Getty Images
The disclosure was made by MEMAN Chairman, Hubb Stokman, during a webinar hosted by the association on Tuesday, PUNCH reported.
Why the partnership was introduced
According to Stokman, the arrangement is designed to enhance efficiency in the downstream sector while addressing concerns about concentration risk.
He explained that although Nigeria now has a refinery capable of meeting most domestic fuel demand, dependence on one facility could pose challenges.
Stokman noted that distributing products through marketers helps spread supply channels and improve operational efficiency.
He added that the decision was made in consultation with regulators to ensure alignment with market realities.
Global crisis highlights need for flexibility
Stokman said recent volatility in the global oil market, triggered by the Middle East crisis, has reinforced the importance of flexible supply arrangements.
He explained that the crisis occurred shortly after the supply agreement was introduced, leading to rapid changes in global prices.
Despite this, he said the Nigerian market has remained stable so far, with the arrangement delivering positive results.
However, he stressed the need for continuous adjustment in response to changing global conditions, warning against rigid market strategies.
Fuel pricing and supply outlook
The MEMAN chairman noted that fuel prices in Nigeria continue to reflect international market trends under the deregulated system.
He also stated that supply security remains strong, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) maintaining a needs-based approach to fuel imports.
According to him, Nigeria had over 30 days of petrol stock as of early March, providing a buffer amid global uncertainties.
Stokman further highlighted the role of the Nigerian National Petroleum Company (NNPC) Limited as a supplier of last resort, ensuring stability in supply across the country.
Expert calls for competitive market
Also speaking at the event, energy expert and partner at Zeta Advisory and Consulting, Joe Nwakwue, emphasised the need for a competitive market structure.
He warned that reliance on a single refinery could create dominance risks, which must be mitigated through regulatory measures.
Nwakwue said allowing fuel imports remains critical to maintaining competition and preventing price distortions.
Source: Getty Images
Concerns over pricing and policy clarity
The expert noted that Nigeria remains exposed to global oil price fluctuations, as domestic fuel pricing is still tied to international benchmarks such as Brent crude.
He suggested that mechanisms like the naira-for-crude policy could be structured to reduce the impact of global volatility.
Nwakwue also raised concerns about policy inconsistencies, urging regulators to provide clearer direction to boost market confidence.
He warned that a sharp rise in petrol prices could negatively affect economic growth, especially if prices approach N2,000 per litre.
While discouraging a return to full subsidy, he recommended targeted and temporary interventions to cushion the impact on consumers.
Petrol marketers announce new prices
Legit.ng earlier reported that petroleum marketers have released a new template showing depot prices for Premium Motor Spirit (PMS), also known as petrol, across several distribution hubs in Nigeria.
The data shared by the Major Energies Marketers Association of Nigeria showed that depot prices vary across key locations, including Lagos, Warri, Calabar, and Port Harcourt.
The pricing adjustments followed a revision by the Dangote Petroleum Refinery, which restored its petrol ex-depot price to N1,175 per litre.
Source: Legit.ng
