Dangote Refinery: Why cheaper fuel price is unsustainable in Nigeria – Retailers, marketers
Recent reduction in petrol prices in Nigeria has sparked momentary excitement among citizens, but industry players warn that the development may portend greater danger in the oil downstream sector.
SOCIETYWATCH recalls that two weeks ago, the price of petrol dropped significantly nationwide.
In Abuja and Lagos, the retail price of petrol fell between N885 to N945 per litre, down from N910 and N955, depending on the location and filling stations.
The development comes after the federal government announced the suspension of the planned 15 per cent import duty on petrol and diesel.
However, Dangote Refinery had attributed the drop to its November ex-depot price reduction to N828 per litre from N877.
Moreover, the ex-depot price of petrol as of Monday morning has increased to N854 per litre for Dangote Refinery and Pinnacle and N860 per litre for other depot owners.
Regardless of who is responsible for the price cut, stakeholders fear that the lower prices are artificial and unsustainable.
Exclusive interviews granted to SOCIETYWATCH by two major petroleum marketers’ bodies— the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN), reveal deep concerns that the current pricing is unsustainable and potentially harmful to the sector.
