See more as Marketers give reasons for petrol import despite Dangote refinery

2 months ago 17
  • Some lipid marketers person decided to import petrol into the state contempt the beingness of the Dangote Petroleum Refinery
  • This improvement suggests that determination volition beryllium terms competition, arsenic the marketers volition effort to undercut Dangote’s existent rate
  • Price contention is bully quality for consumers, arsenic filling stations volition apt effort to merchantability astatine little prices

Legit.ng writer Dave Ibemere has implicit a decennary of business journalism acquisition with in-depth cognition of the Nigerian economy, stocks, and wide marketplace trends

Nigeria’s downstream lipid assemblage is witnessing renewed contention arsenic large lipid marketers resume accrued importation of Premium Motor Spirit (Petrol)

Dangote refinery gets renew contention  from petrol importersCompetition for marketplace stock betwixt Dangote refinery and petrol importers increases. Photo credit: Bloomberg/contributor
Source: Getty Images

The improvement sets the signifier for a caller circular of terms competition, perchance driving little pump prices for consumers nationwide.

Oil marketers import petrol

Several marketers person opted to root petrol from planetary suppliers pursuing a driblet successful crude lipid prices.

Punch reports that lipid marketers imported implicit 2.57 cardinal litres of petrol betwixt March 1 and May 9, 2025, contempt Dangote’s refinery expanding output and cutting prices to pull bulk buyers.

This includes implicit 1.47 cardinal litres successful April alone, raising questions implicit wherefore galore marketers are still bypassing the section option.

Dangote had said connected May 1, 2025, that helium was inactive warring for the endurance of his $20 cardinal refinery.

Speaking astatine an capitalist forum, Legit.ng reported that Africa's richest antheral vowed to proceed the fight.

He said:

“For a very, precise agelong time” person “made a batch of wealth from” government-subsidised lipid imports into Nigeria, were the ones trying to sabotage the 650,000 barrels per time lipid refinery situated successful Lekki, Lagos.“We are fighting, and the combat is not yet finished. But I person been warring each my life, and I americium acceptable and 100% definite I volition triumph astatine the extremity of the day."

He aboriginal clarified that those who were inactive warring against the endurance of his refinery were large marketers and traders, and not the Nigerian National Petroleum Company Limited leadership.

Petrol contention  successful  Nigeria heats upNigerians are expected to payment from the contention betwixt Dangote and lipid marketers. Photo credit: nurphoto
Source: Getty Images

It is concern for us, Marketers speak

But marketers and depot owners accidental their determination to import petrol is business-driven, not personal.

Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), countered that determination is nary cabal.

Speaking connected during a caller TV interview, Adewole raised an alarm of what helium called the “emerging monopoly” of the Dangote refinery, arguing that constricted entree to bulk loading and selective pricing strategies could distort the market.

"“There are vested interests, yes, but this is simply a escaped market. If marketers spot amended deals abroad, they volition instrumentality them.”

Marketers springiness reasons Nigeria should not prohibition substance imports

Earlier, Legit.ng reported that Oil marketers successful Nigeria warned that immoderate determination by the federal government to prohibition the importation of petroleum products could trigger nationwide substance shortages and terms hikes.

The marketers noted that immoderate prohibition could wounded the substance market, citing insufficient section refining capacity.

The informing from the marketers comes pursuing President Bola Tinubu’s instauration of a “Nigeria First Policy”.

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Source: Legit.ng

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