Osifo explained that NNPC may purchase PMS at approximately N950, but sell it to independent marketers at around N700, leading to a significant shortfall that NNPC manages.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has explained why independent marketers can't buy petrol from Dangote Refinery.
The association’s president, Festas Osifo spoke at a press conference in Lagos, on Tuesday.
PENGASSAN said the issue stems from a pricing disparity between the costs at which the Nigerian National Petroleum Company Limited (NNPCL) buys PMS and the prices it sells to independent marketers.
Osifo explained that NNPC may purchase PMS at approximately N950, but sell it to independent marketers at around N700, leading to a significant shortfall that NNPC manages.
He said major marketers would buy directly from Dangote at a price similar to NNPCL’s purchase but would need to sell it at a higher price, potentially over N1,000.
Independent marketers prefer to purchase from NNPCL to take advantage of the lower prices, he said.
Osifo noted that some crude oil has been tied to loan repayments, limiting the available supply for local consumption.
He cautioned that the ongoing trend of divestment by International Oil Companies (IOCs) poses both risks and opportunities for Nigeria, including potential reductions in foreign direct investment and production levels.