Fuel Price Talks: Dangote, PETROAN Negotiations Over Supply, Costs Continues

Kehinde Fajobi

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is finalising talks with the Dangote Petroleum Refinery to conclude terms for lifting petroleum products.

Dr Billy Gillis-Harry, PETROAN’s National President, led a team to negotiate and seal a deal with the refinery on Monday.

This partnership reflects growing interest in the $20 billion, 650,000 barrels per day (bpd) facility, with other marketers such as the Major Energy Marketers Association of Nigeria (MEMAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) also pledging patronage.

However, Gillis-Harry clarified in a phone interview with Vanguard on Sunday that lifting would not commence immediately, as discussions around pricing, volume, and logistics remain ongoing.

“We are working out details. Pricing, volume, frequency and logistics are still being discussed,” he said.

Ehimen Joseph, Chairman of PETROAN’s Lagos Chapter, highlighted the challenges involved.

“Lifting of petroleum products comes with some challenges, including financing, operations, and logistics. It would likely cost about ₦42 million per truck of 33,000 litres to lift petrol.

“The details should be worked out because if we take a loan to fund our operations, the interest will start to count immediately,” he noted.

In an earlier statement, PETROAN expressed optimism about its efforts to avert fuel shortages, especially during the festive season.

“We are happy that Nigerians are going to travel effortlessly during this period of the year,” the statement read.

Gillis-Harry commended Mr Devakumar V. G. Edwin, Vice President of Dangote Group and Managing Director of Dangote Refinery, for ensuring petroleum product availability.

PETROAN disclosed that the agreement includes reserving a monthly volume for its members, with favourable payment terms.

While PETROAN withheld specific business terms, it reassured Nigerians of product availability and affordability, cautioning against panic buying.

“We hereby reassure Nigerians of PETROAN’s preparedness to ensure zero-scarcity of petroleum products during the upcoming festive season and beyond as all our retail outlets operators in all the states in Nigeria have been placed on green alert,” the association stated.

PETROAN also called on stakeholders to support NNPC Retail Ltd and Dangote Refinery in sustaining supply across the country.