Concerns over a potential ban on fuel importation by President Bola Tinubu have sparked fresh disputes between Dangote Petroleum Refinery and oil marketers. Marketers claim that if the ban is enforced, petrol prices could skyrocket to N1,500 per litre, citing fears of local refiners exploiting monopoly power.
Marketers Voice Concerns:
• Chinedu Udadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that local refiners, including the Dangote Refinery, might hike prices if importation ceases.
• The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) also expressed concerns, predicting a surge in prices but did not specify figures.
Dangote Refinery Responds:
• Officials at Dangote Refinery dismissed the allegations, accusing marketers of attempting to justify the continued importation of “substandard” fuel.
• The refinery assured that its 650,000 barrels per day capacity is sufficient to meet local consumption and export demands, despite claims by importers that it cannot fulfill local needs.
Background:
• Speculation over the ban stems from Tinubu’s ‘Nigeria First Policy’, which mandates government agencies to prioritize locally produced goods over imports.
• Nigeria currently imports about 14.7 million litres of petrol per day to meet its consumption needs.
Legal Tensions:
• The Dangote Refinery recently dragged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to court, along with other key industry players.
• This move has raised concerns among importers, depot owners, and marketers, who fear market dominance by Dangote.
Ukadike’s Appeal:
• Speaking to reporters, Ukadike stressed the need for importation to remain to prevent price exploitation by local refiners.
• He argued that even modular refineries currently sell diesel at higher prices compared to imports, highlighting the risks of a monopolized market.
• He urged President Tinubu to reconsider the ban, emphasizing that importation helps stabilize domestic prices.
“We won’t want refiners to start extorting Nigerians because there are no more imports. Sometimes, import helps to regulate the prices of petroleum products,” he stated.
Ukadike concluded by saying that fuel importers would willingly halt imports if local refinery prices were genuinely competitive.
