Marketers Fear Dangote Refinery’s Petrol Price, Urge Government Support

Petroleum marketers are apprehensive about the impending entry of Dangote Petrochemical Refinery into the Nigerian petrol market, expected within two to three weeks.

Concerns arise over potential higher prices, given the refinery’s reliance on imported crude oil due to challenges in securing local feedstock from international oil companies (IOCs).

Speaking to Punch, Hammed Fashola, National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted the refinery’s struggle with sourcing crude locally and its consequent reliance on costlier imports from the United States and other countries. This, he cautioned, could lead to elevated prices for Dangote petrol, making it less competitive in the market.

Fashola urged the Federal Government to intervene by facilitating Dangote’s access to local crude oil supply, which he believes would mitigate price concerns and ensure fuel availability and affordability for Nigerians.

While advocating government support for Dangote, Fashola emphasized the importance of fair pricing and urged against any potential market monopoly by the refinery. He stressed that Dangote should sell petrol at reasonable rates to benefit the public.

The situation underscores the challenges and expectations surrounding Dangote Refinery’s entry into the Nigerian fuel market, highlighting the complexities of local and international dynamics affecting petroleum pricing and supply.