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Tuesday, November 05, 2024

Marketers Say Dangote Refinery Built To Sell Expensive Fuel To Nigerians

Nigerian fuel marketers have raised concerns about the pricing model of the newly operational Dangote Refinery, arguing that it is geared towards selling fuel at a high price to local consumers. According to the marketers, the refinery's pricing structure is aligned with international rates, which results in more expensive fuel prices in Nigeria. They argue that, instead of making fuel cheaper, the refinery appears to be prioritizing profitability on a global scale, particularly in foreign markets, where it can sell refined products at competitive rates.


The refinery, which is Africa's largest, has the potential to significantly reduce Nigeria’s dependence on imported fuel by refining crude oil locally. However, due to its commitment to international pricing standards, many Nigerians may not see the anticipated relief from the high cost of fuel that they had hoped for. 

This has sparked debate on whether the refinery will deliver the expected economic benefits to the country, especially given the promise of reduced import dependency and lower fuel costs for Nigerians.

This issue comes amidst broader challenges in Nigeria’s oil sector, including subsidy removals and fluctuating global oil prices, which have already placed financial strain on Nigerian citizens. The high cost of fuel has also contributed to rising inflation, impacting the cost of living across the country.....

Edited from Punch

16 comments:

  1. God abeg oh, thought he will be selling cheaper

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    1. Dangote has met his match in Tinubu, who is not the typical Nigerian President that lacks exposure. Dangote hates competition and always destroys competitors' businesses, working hand in gloves with past Presidents, especially Obasanjo. Let the market/people determine the cheapest and best quality petroleum product to buy. We say no to monopoly.

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  2. I thought his own will be cheaper ooo.Chineke Biko oooo..

    Hello iya Boys

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  3. No need of buying from him then since he sells 990 while imported once are sold 970 except he decided to adjust the price

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  4. There’s no way fuel will be available to Nigerians at a cheap price. We need to get it into our skulls that for fuel to be readily available, it will never be cheap. If you take a look at oil producing countries in the world, price of fuel in Nigeria is one of if not the cheapest. It is not cost effect to sell it cheap. For Nigerians to enjoy power, fuel etc, we need to pay properly for it. We are too used to being spoon fed with subsidies and that has to stop. Why is Nigeria selling power to other African countries or why do you think fuel is being sold to African countries instead of here?

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    1. Anon 11:12, I strongly disagree with your position. Fuel can be made more affordable for Nigerians. Last year, we were purchasing fuel at 187 Naira, and the economy did not collapse.
      As someone working in the oil industry, I can boldly say that Nigerian fuel is not among the cheapest in oil-producing countries. Besides, when assessing fuel affordability, it's crucial to consider factors such as minimum wage, cost of living, and inflation rates.

      Lastly, subsidies on essential goods are common worldwide, including in countries like the US, Russia, China, Ghana, and even South Africa.

      The economic consequences of removing subsidies, as seen in Liberia and Sierra Leone in the late 1990s and early 2000s, can be severe. Without government intervention, the system will eventually collapse.

      Meanwhile, why is nobody talking about PH Refinery despite the billions pumped into it? Does this look like a government that remotely cares for us?

      We need to do better and tell the government the truth.

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    2. Please stop saying that nonsense about Nigeria having the cheapest fuel in the world. In Switzerland, there’s no minimum wage but only a few people, if any, will earn less than 3,500 francs and fuel is btw 1.70-1.80 francs per liter. In Portugal, minimum wage. Do the maths urself and never say that rubbish again.

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    3. So you’re comparing Nigeria to Switzerland that has a population of less than 9 million people but almost more money than Nigeria. Petrol was sold at N187 but the country was borrowing hundreds of billions monthly to pay subsidize it.you don’t even know what you’re saying.

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    4. 11.12, Saudi is one of the largest oil producing states we have in the world, i am a hajiya, i went to saudi n saw for myself, the year i went, fuel was cheaper than water, bcos they are in the sahara, their water is more expensive. When they go shopping wt their family, they never ever turn off the ignition of their car, it keeps running till they finish and come of of the supermarket, u can ask anybody that has gone for hajj. So i dnt kno where u got ur info about how nigeria has the cheapest fuel among oil producing states, pls get ur facts right.

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    5. Another mugu. Saudi Arabia is one of the top 10 richest countries in the world with a population of 36 million and you want to compare them to Nigeria. Make una dey try get sense. Try and give me the whole money Nigeria has to Lagos and see development that will happen. Hajiya wey no get sense

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  5. Different episodes 🤨🤨🤨

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  6. The high cost of fuel is indeed taking a serious toll on Nigerians, with "T-pain" capturing the everyday struggle people face as prices for transportation, food, and basic needs soar. Reducing fuel prices without reinstating subsidies is a tough balance, but it's crucial for the government to explore all viable options. Measures like increasing competition, promoting other local refineries, and diversifying the supply chain could help bring prices down. Additionally, if necessary, considering the importation of fuel from alternative sources to avoid dependence on a single supplier could create a more competitive and affordable market.

    Boycotting high-priced fuel in favor of more affordable options could send a powerful message and push for necessary price adjustments. Nigerians need relief, and ensuring affordability and stability in the fuel sector would go a long way in easing the pressures they face daily.

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  7. I think this is a propaganda.
    Dangote needs to come out and set the record straight.

    Mao Akuh

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    1. What propaganda? Dangote addressed a press conference over the weekend deriding the regulators that they do not have the equipments to detect substandard fuel - what was the meaning of that? Is he just realising that now cos he wants a monopoly in the downstream oil sector? He is always against competition in any sector he invests in - thank God for BUA who fought him to a standstill in the cement biz and is building an equally big Refinery. Tinubu is on the right track opening up the oil sector and removing the subsidy. So much corruption, especially by a section of the country that is grossly poor but whose big men live on rentage and stealing from the public purse

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  8. Dangote greed has made him to forget he is getting old.

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