The Petroleum and Natural Gas Senior Staff Association of Nigeria has offered reasons why independent marketers are unable to purchase petrol directly from Dangote Refinery.

The President of the association, Festas Osifo, offered the explanation when he spoke with newsmen in Lagos on Tuesday. 

Osifo said the major reason is the pricing disparity between the costs at which the Nigerian National Petroleum Company Limited buys petrol and the price it sells to independent marketers.

He said while the NNPC may purchase petrol at N950, it sells it to independent marketers for around N700.

He said the NNPCL then manages the significant shortfall.

Osifo said if the major marketers buy directly from Dangote at a price similar to that at which NNPCL purchases it, they will need to sell for at least N1,000 anywhere in the country.

He added that this accounted for why the marketers still buy petrol from NNPCL.

He noted that some part of Nigeria’s crude oil has been tied to loan repayments, thus limiting the available supply for local consumption.

He said the ongoing divestment by International Oil Companies poses both risks and opportunities for Nigeria, including potential reduction in foreign direct investment and production level.