Fuel price reduction: Dangote Refinery, petrol marketers clash over reason for drop

Dangote Refinery and Nigerian petroleum products marketers have disagreed on the reason for the country’s recent reduction in petrol price.

reports that Nigerian filling stations dropped fuel prices in Abuja to between N940 and N945 per litre, down from N945 and N955.

The drop in petrol price came at a time the federal government announced the suspension of its planned 15 per cent import duty on petrol and diesel to encourage local production.

In an exclusive interview with SOCIETY WATCH, the spokesperson of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, linked the latest PMS price drop to the policy reversal.

He explained that that proposed 15 per cent import tariff would have led to indirect inflation and an increase in petroleum pump prices.

According to him, the 15 per cent import duty on petrol is an affront against the forces of demand and supply in a deregulated petroleum downstream sector.

“You understand me that if the 15 per cent import duty on petrol and diesel was implemented, that is an indirect inflation, an increase in pump price on petroleum products.

“There is no way in a deregulated economy where you will not allow the forces of demand and supply to control the market.

So now that the federal government had looked deeply at the 15 per cent tariff, it was suspended for the reason that this was going to kind of trigger inflation.

“So, we, the independent marketers, are happy that our voices were heard.

“And this will also make the competition healthier and ensure the total compliance of the PIA.