Subsidy Payment By NNPCL Makes Buying Fuel Directly From Dangote Refinery Difficult – PENGASSAN
The association’s president, Festas Osifo, at a press conference in Lagos State, on Tuesday, noted that the decision not to buy fuel from Dangote refinery directly but rather buy from NNPCL was due to a pricing disparity between the costs at which the NNPCL buys PMS and the prices it sells to independent marketers.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has revealed that the Nigerian National Petroleum Company Limited (NNPCL) reduced the price of petroleum when supplying to marketers.
The association’s president, Festas Osifo, at a press conference in Lagos State, on Tuesday, noted that the decision not to buy fuel from Dangote refinery directly but rather buy from NNPCL was due to a pricing disparity between the costs at which the NNPCL buys PMS and the prices it sells to independent marketers.
Osifo noted that there were instances that the NNPC might purchase PMS at approximately N950 but end up selling to independent marketers at around N700, which helped to reduce the price at which the NNPCL would have otherwise bought the fuel.
He said major marketers would buy directly from Dangote Refinery at a price similar to NNPCL’s purchase but would need to sell it at a higher price, potentially over N1000.
Independent marketers prefer to purchase from NNPCL to take advantage of the lower prices, he said.
There have been uncertainties on how much Nigeria’s NNPCL buys refined petroleum from Dangote refinery given the loggerheads between both parties on how much each litre of refined petroleum was actually lifted.
