Nigeria’s oil marketers are urging the Dangote Petroleum Refinery to lower its recently introduced diesel price. The marketers argue that the current price, between N1,225 and N1,300 per litre, is too high considering the refinery’s location within Nigeria and the recent appreciation of the naira.
IPMAN proposes a price range of N700 to N850 per litre for Dangote diesel.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) is at the forefront of the pricing challenge. They point out that imported diesel currently lands in Nigeria at around N1,250 per litre due to the stronger naira. Since Dangote avoids import costs like vessel rentals and foreign exchange fluctuations, they believe the locally produced diesel should be significantly cheaper.
This,they argue, would benefit Nigerians in several ways:
Lower transportation costs: Diesel is a critical fuel for transporting goods and services. A reduced price would translate to lower overall costs.
Reduced profiteering: A more competitive market discourages excessive markups by retailers.
Naira strengthening: Increased local production and lower prices could further strengthen the Nigerian currency.
IPMAN plans to meet with Dangote refinery officials next week to discuss the pricing issue. Additionally, they will seek intervention from the Federal Government.
The Dangote refinery recently began supplying diesel to the domestic market, sparking initial hope for a price decrease. While some IPMAN members have already purchased diesel at the current price, the association is pushing for a downward revision.
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