Oil Marketers Call for Price Cut as Dangote Refinery Faces Scrutiny

Oil marketers in Nigeria are intensifying pressure on the Dangote Petroleum Refinery to slash the pump price of diesel amidst increasing scrutiny over the refinery’s pricing strategies.

The call for a reduction in prices comes as the indigenous refinery continues to grapple with challenges in the local market, despite its ambitious plans to revolutionize Nigeria’s petroleum sector.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria have both joined the chorus of voices demanding a downward review of diesel prices produced by the Dangote refinery.

The current price of N1,225 per litre has drawn criticism from industry stakeholders, who argue that it is unreasonably high for a locally produced commodity.

Speaking to media, Chief Chinedu Ukadike, the National Public Relations Officer of IPMAN, commended the refinery for its efforts but stressed the need for more affordable pricing.

“During the construction of the Dangote refinery, we supported and welcomed it. Now that a private refinery with high capacity has started producing petroleum products in Nigeria, we would have appreciated that its products sold to Nigerians would be cheaper,” Ukadike stated.

One of the primary reasons cited for the demand for lower prices is the absence of import-related costs associated with diesel produced domestically. Unlike imported diesel, which incurs expenses such as vessel costs and import charges, diesel from the Dangote refinery should theoretically be cheaper due to reduced logistical overheads.

Oil marketers also argue that the recent appreciation of the naira against the dollar should translate into lower prices for domestically produced diesel. With imported diesel currently landing in Nigeria at N1,250 per litre, the disparity in pricing raises questions about the competitiveness of locally refined products.

The issue has prompted IPMAN and other industry groups to schedule meetings with the management of the Dangote refinery to discuss pricing concerns. The expectation is that these discussions will lead to a fairer pricing structure that benefits both consumers and industry players.

Despite the pressure from oil marketers, the Dangote refinery has remained tight-lipped on the matter, declining to comment on the calls for price reduction.

However, sources within the refinery have confirmed that diesel sales have commenced, with plans to introduce Premium Motor Spirit (petrol) to the market in the near future.

The Dangote Petroleum Refinery, with a nameplate capacity of 650,000 barrels per day, holds significant potential to transform Nigeria’s energy landscape.