Marketers queries Dangote over Fuel Price
The disagreement between Dangote Refinery and petroleum marketers in Nigeria has escalated, as the President of the Dangote Group, Alhaji Aliko Dangote, asserted that petroleum marketers were not showing interest in purchasing petroleum products from his refinery.
The discontent between the stakeholders in the industry began with the rollout of premium motor spirit (PMS), commonly known as petrol, from Dangote Refinery in September. Despite expectations of a decline in fuel prices from the private refinery, consumers were disappointed when prices skyrocketed.
Dangote, speaking after a meeting with President Bola Tinubu at the presidential villa on the naira-for-crude policy, emphasized that his refinery was ready to supply over 30 million litres daily, emphasizing that his refinery had sufficient capacity to satisfy the country’s demand.
He emphasized that, at full capacity, the refinery could supply up to 30-32 million litres daily, a volume that the country could start receiving within a week. Additionally, he stated that the refinery currently had 500 million litres of petrol in its tanks, which would be sufficient for the country’s needs for approximately 12 days.
Despite Dangote’s remarks, his comments sparked a wave of responses from marketers, including major and independent petroleum marketers who disputed Dangote’s claims, insisting that they were open to buying from him, but only at competitive prices.
One marketer emphasized the significance of competition in a deregulated market, stressing that Dangote must compete for customers by providing better terms and prices to attract buyers to his refinery. He argued that people have the freedom to choose where to purchase their fuel, and that all players in the industry must compete for customers, including the refineries.
Another marketer revealed that he had recently imported PMS at a lower cost than the price Dangote Refinery was offering, indicating that the refinery’s prices were not as competitive as Dangote claimed. The marketer further emphasized that if Dangote’s prices had been more favorable, more marketers would have been eager to purchase from him.
The ongoing disagreement between Dangote Refinery and petroleum marketers highlights the importance of pricing and competition in a deregulated market, as well as the significance of transparency and open communication in resolving disputes.
The tension between Dangote Refinery and petroleum marketers also underscores the need for a balance between private and public interests in the petroleum industry.
While the Dangote Refinery has the potential to significantly alleviate Nigeria’s dependence on imported fuel and contribute to the country’s economic growth, it must also operate in a manner that promotes fair competition and benefits the wider population, including consumers and other players in the industry.
The government’s role in this dispute will be crucial, as it must find a way to strike a balance between supporting private enterprise and ensuring the fair and equitable distribution of resources for the benefit of all Nigerians.
References and Citations:
- Dailypost – Fuel price motivation for Aliko Dangote won’t be defeated – Tinubu
- Punch – Marketers ready to buy petrol from Dangote – IPMAN President
- Dailytrust – Dangote, marketers in fresh row over sale of petrol
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