Competition is affecting Dangote Refinery, Dangote is ready to sell on Credit to any marketer that can buy a truck and the marketer will get the second truck on credit.
Dangote Refinery faces competition from several sources, including:
Fuel importers
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) continues to issue licenses for refined product imports, which can make it harder for Dangote to meet local demand.
Marketers
Marketers have different views on whether to pay Dangote in advance for petrol. Some say that advance payments can put financial pressure on marketers, especially those with limited capital. Others say that advance payments are necessary to ensure the refinery’s operations run smoothly.
Legal disputes
Oil marketers are in a legal dispute with Dangote over the refinery’s request to restrict import licenses.
Direct purchasing
Marketers can now purchase petrol directly from Dangote Refinery and other local refineries. This allows marketers to negotiate commercial terms directly with the refineries, which can create a more competitive market environment.
The start of operations at the Dangote Petroleum Refinery and other refineries has increased transparency and market competition in West Africa.
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