In a bold move, Nigerian oil marketers have announced plans to import fuel at prices lower than those offered by the Dangote Refinery. According to industry insiders, the cost of petrol from the Dangote Refinery stands at N1,015 per liter for bulk purchases and N1,028 per liter for smaller buyers. However, marketers claim they can secure imported fuel at significantly lower rates.
Cheaper Alternatives
The Petroleum Retail Outlet Owners Association of Nigeria has vowed to sell imported petrol below the prices offered by the Dangote Refinery. This decision comes after the association discovered that imported fuel can be sourced at around N800 per liter. Dr. Joseph Obele, Publicity Secretary of PETROAN, revealed that the organization has partnered with international suppliers to import fuel at competitive prices.
Market Dynamics
The development has sparked concerns about the Dangote Refinery’s pricing strategy. Industry experts suggest that the refinery’s prices may be influenced by the cost of crude oil, which was purchased at $80 per barrel. However, with global crude oil prices dropping to $72 per barrel, marketers argue that the refinery should review its prices downward.
Impact on Consumers
The planned importation of cheaper fuel is expected to benefit Nigerian consumers. With more affordable options available, consumers may see a reduction in fuel prices nationwide. The move also highlights the importance of competition in the oil marketing sector, as players strive to offer the best value to customers.
Reactions from Stakeholders
The Dangote Group has dismissed reports on the refinery’s pricing as “fake news”. However, marketers remain adamant that imported fuel will be cheaper. The Nigerian National Petroleum Company Limited (NNPC) has also been accused of inflating prices as a middleman . As the situation unfolds, one thing is clear: Nigerian consumers are poised to reap the benefits of increased competition in the oil market.