Petroleum product marketers in Nigeria have written to President Bola Tinubu, raising concerns about the impact of Dangote Refinery’s diesel pricing on their businesses. The marketers complained that the current price of diesel, set at ₦900 per liter by the Dangote Refinery, is negatively affecting their operations.
This was revealed by Devakumar Edwin, Vice President of Dangote Industries Limited, during a Twitter Spaces session organized by Nairametrics.
Edwin disclosed that the price of diesel produced by the Dangote refinery has decreased from ₦1,200 per liter to ₦1,000 and is now at ₦900. Despite these price reductions, marketers claim that the local prices are still hampering their businesses.
One of the major challenges facing the refinery is the low patronage from local petroleum product importers. According to Edwin, Dangote Refinery is currently struggling to sell about 29 tankers of diesel daily within Nigeria due to this lack of local demand. As a result, the refinery has been forced to export most of its diesel and aviation fuel.
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“We have been exporting aviation fuel; we have been producing kerosene; we have been producing diesel; but yesterday, we started the production of PMS (Premium Motor Spirit). So, that was the last stage. The only thing now left out is petrochemicals,” Edwin shared during a radio interview.
The Vice President of Dangote Industries also emphasized the refinery’s readiness to supply PMS locally. However, he mentioned that there has been resistance from local traders and petroleum dealers, including the Nigerian National Petroleum Company Limited (NNPC), in lifting the refinery’s products within the country.
“If the traders or NNPC are not buying the product, obviously, we will end up exporting the PMS as we are doing with aviation fuel and diesel,” Edwin noted.
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Edwin expressed frustration at the unexpected challenges that Dangote Refinery has faced since commencing operations. The refinery, which was expected to significantly reduce Nigeria’s reliance on imported petroleum products, is now exporting a large portion of its fuel output due to the lack of local patronage.
This development comes at a time when Nigeria continues to grapple with rising fuel prices and economic challenges. The concerns raised by petroleum marketers highlight the complexities of the country’s fuel supply chain and the ongoing issues surrounding the adoption of Dangote Refinery’s locally produced products.
