The Major Energy Marketers Association of Nigeria (MEMAN) has shifted its petrol sourcing strategy, securing 148 million litres from the Dangote Refinery between September 16 and November 24, 2024. This marks an average daily supply of 2 million litres, showcasing the refinery’s pivotal role in Nigeria’s downstream sector.
Why Local Sourcing is Winning
MEMAN CEO Clement Isong, represented by Ogechi Nkwoji, attributed the reliance on Dangote Refinery to its competitive pricing and streamlined supply chain. This shift also aligns with a federal government directive allowing independent marketers to bypass the NNPCL, fostering market efficiency and transparency.
Key Petrol Pricing Dynamics
- Spot Price: ₦976.07/litre (October 10–November 22, 2024).
- Average Price: ₦971.14/litre.
- Cost per Metric Tonne: ₦708,390, based on an exchange rate of ₦1,665.99/USD.
Major Cost Drivers
- Finance Charges: 32% per annum.
- Freight Costs: Ship-to-Ship (STS) operations with a 10-day delivery timeline.
- Port Fees: NPA berthage and cargo handling fees, along with NIMASA and NMDPRA levies.
- Miscellaneous Costs: Capped at ₦2.00/litre.
Impact on Nigeria’s Energy Sector
The move to source locally from Dangote Refinery signals a strategic shift towards self-reliance in petrol supply. Despite challenges like fluctuating supply volumes, high finance costs, and regulatory charges, the transition highlights a pathway to stabilizing Nigeria’s energy landscape through local production and market-driven pricing models.
This evolution underscores the importance of policy reforms and private sector collaboration in driving efficiency and securing Nigeria’s energy future.