Marketers Express Fear As Dangote Petrol Set To Hit Local Markets, Say It Might Be Too Expensive

Petroleum marketers have expressed fear over the price of petrol from Dangote Petrochemical Refinery.

Naijaonpoint understands that the product is set to hit the Nigerian local market in two to three weeks.

However, petrol marketers do not seem to look forward to the development as they claim that the product’s price may be higher than expected.

They spoke against the backdrop of the 650,000-capacity refinery’s failure to get feedstock locally from the international oil companies.

Dangote Refinery has continued to import crude oil from the United States and other countries at a higher cost.

This development has reportedly made its diesel and aviation fuel not very attractive to some local marketers due to price reasons.

Speaking in an interview with Punch, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, said crude imports would jerk up the price of Dangote petrol.

According to Fashola, the refusal of IOCs to sell crude oil to Dangote will be a big challenge to the $20bn refinery, even as he acknowledged that the IOCs also have other business commitments.

According to him, “The non-supply of crude is a big challenge for Dangote. You know Dangote cried out too. The international oil companies too will have their reasons; you know they have their commitments too. It’s not like they will start feeding Dangote only. People should understand that.

“I think Dangote should consider that. I know this prompted Dangote to go outside the soil of Nigeria to seek crude oil. You know when he keeps bringing crude oil from the United States, that is another cost. That is another problem we are scared of because it will still boil down to the high cost of petrol, unlike where he can source the crude locally in Nigeria.”

To resolve this, the IPMAN leader asked the Federal Government to assist Dangote with the supply of crude oil. This, he said, would solve the problems Nigerians face with fuel availability and affordability.

“I will advise that the government should assist Dangote in the supply of crude oil. If Dangote can get an adequate supply of crude oil locally, I think the whole problem will be solved somehow. I don’t think there will be any need for anybody to go and bring in petrol again, especially if Dangote is selling at a reasonable price,” he added.

Fashola, however, enjoined Dangote not to monopolise the petroleum if he eventually got the support of the government, saying the refinery must sell PMS at a reasonable price.

“Dangote too should not see it as an advantage to start monopolising the market by raising fuel prices. Dangote has to come with a clean mind by selling at a reasonable price to the public,” he said.