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Vice President of Dangote Industries Limited, Devakumar Edwin, revealed that petroleum product marketers in Nigeria have raised concerns with President Bola Tinubu, claiming that the company’s current diesel price of N900 per litre is too low and is negatively impacting their businesses.
Over the past few months, the Dangote Refinery has reduced its diesel prices from N1,200 to N1,000 and now N900 per litre, which has affected the revenue and margins of fuel marketers. Edwin made this known during a Twitter Spaces session hosted by Nairametrics, explaining the refinery’s struggles in selling diesel due to low local demand.
According to Edwin, the refinery, located in the Lekki Free Zone, has been producing a variety of petroleum products including diesel, aviation fuel, and kerosene. However, despite these efforts, they are now forced to export most of their products due to poor local patronage. On average, the refinery struggles to sell around 29 tankers of diesel per day.
Edwin said, “Petroleum product marketers in Nigeria have written to President Bola Tinubu to complain that the refinery’s local prices, which have dropped from N1,200 to N1,000 and now N900 per litre, are impacting their businesses negatively.”
Additionally, Edwin highlighted that the refinery has started producing Premium Motor Spirit (PMS), commonly known as petrol, but faces challenges with crude oil supply. While the philosophy behind the refinery was to refine Nigeria’s crude domestically and supply finished products locally, the refinery is now importing crude from the U.S. and Brazil due to insufficient local allocation.
Edwin further explained, “What is happening today? We are struggling to get the crude. We are now importing the crude from the US, we are importing from Brazil, and from other parts of the world. So, the whole philosophy has gone upside down.”
