Secret Reporters No place to hide
Secrets Reporters
While Nigerians had anticipated a drop in fuel prices with the launch of Dangote Petroleum Refinery & Petrochemicals FZE, the recent price surge has left many disheartened.
Tensions between Dangote Refinery and Nigerian petroleum marketers have continued, with conflicting statements from Dangote’s management, the Nigerian National Petroleum Company Limited (NNPCL), and other marketers. Since the roll-out of premium motor spirit (PMS), or petrol, from Dangote Refinery in September, the atmosphere has remained uneasy, fueled by speculation over Dangote’s pricing practices.
Amidst ongoing debates, SecretsReporters has uncovered the actual price at which Dangote sells fuel to marketers and explained why fuel costs have remained unexpectedly high.
A proforma invoice obtained by SecretsReporters reveals that Dangote Refinery sells PMS at a unit price of ₦990 per liter. This revelation sheds light on why Nigerians continue to face high fuel prices. Dated October 21, 2024, the document details a transaction between Dangote Petroleum Refinery & Petrochemicals FZE and Farhan Oil and Gas Limited for a substantial purchase.
According to the invoice, Farhan Oil and Gas Limited, based at No. 14A Murtala Mohammed Way, Kano State, ordered 10,000 metric tons of PMS, totaling approximately ₦13.53 billion. This amount includes a product value of ₦13,199,967,000 plus a variation cost of ₦329,999,175.
The invoice stipulates a cash pre-payment arrangement, with the product to be lifted at a gantry, highlighting the immediate nature of the transaction and the terms attached.
Further details confirm that the product originates from Nigeria’s Lekki Free Zone, with the discharge port designated as the Lekki Free Zone Customs Office in Lagos Industrial Area. This positioning emphasizes the strategic operations of Dangote Petroleum in Nigeria’s expanding oil market.
The invoice, signed by key officials including the GCCO and the GED of Commercial Operations, adds legitimacy to the transaction, confirming the document’s authenticity.
Furthermore, SecretsReporters learnt that importers are required to lift a minimum of 1 million liters of fuel from Dangote Refinery before they can buy, a threshold unfeasible for retailers who operate fuel stations. As a result, these retailers opt to purchase from importers who source products abroad and offer them at more competitive rates.
As Nigeria navigates the intricacies of its oil sector, transactions of this scale underscore the influence of major players like Dangote Petroleum, with potential implications for fuel prices and availability nationwide.
