Despite relatively low crude oil price ($65.25/ barrel), the Premium Motor Spirit (PMS) cost remains as high as N955 per litre in the Federal Capital Territory (FCT) because marketers purchased the product from a third party.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) National President, Abubakar Maigandi revealed this to The Nation on Wednesday.
According to him, marketers can only access the product through some private depots that get their allocation directly from Dangote refinery or importation.
The 650,000 barrels per day Dangote plant on June 15 announced its plan to distribute the product to end-users by August 15 with 4,000 Compressed Natural Gas (CNG) powered trucks.
Different unions in the downstream sector such as Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN); Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and the Nigerian Association of Road Transport Owners (NARTO) protested the plan.
According to the groups, direct supply of petrol will eliminate the workers from the distribution value chain and cause unemployment.
They also cautioned that it could lead to a monopolistic market.
But as The Nation explored the petrol market in FCT yesterday, it was discovered that the pump prices had been steadily as high as N950 per litre to N960 per litre.
Asked on phone to account for the cause of the product, Maigandi said: “Independent marketers are not getting the product directly from Dangote. While some of us get theirs from private depots, the other ones get theirs through importation.”
He disclosed that PMS sold N877 per litre at the gantry of the Dangote Refinery yesterday.
The PETROAN National President, Dr Billy Hary blamed the high cost on the impasse the protest against Dangote Refinery sack of over 800 workers generated.
He said the market was yet to stabilise from the pressure on prices when the workers down tool in late September 2025.
Besides, he said it was however still hazy to ascertain why the hike has endured for a month.
His words: “The industry is still trying to settle down from the stakeholders’ and Dangote brouhaha.
“One cannot actually pinpoint what has caused the hike.”
Speaking with The Nation on phone, NARTO President, Alhaji Yusuf Othman said he had been away and yet to get an update on the Dangote matter.
