The Dangote Petroleum Refinery has reported that petroleum product marketers in Nigeria have lodged complaints with President Bola Tinubu regarding the recent drop in diesel prices, which they claim is harming their businesses. The allegation was made by Devakumar Edwin, Vice President of Dangote Industries Limited (DIL), during a Twitter Spaces session organized by Nairametrics on September 11, 2024.
The refinery, which began rolling out diesel and Jet A1 fuel from its facility in the Lekki Free Zone, Lagos, has contributed to a significant decrease in diesel prices, from nearly ₦2,000 per litre to below ₦1,000. Edwin noted that the refinery’s diesel prices recently dropped from ₦1,200 to ₦900 per litre, a development that has not been well received by local petroleum marketers, who have expressed their concerns to the President.
Edwin also highlighted the challenges facing Dangote Refinery, including low local patronage, which has forced the refinery to export most of its diesel and aviation fuel. Despite struggling to sell approximately 29 diesel tankers daily, the refinery remains committed to providing fuel locally. However, Edwin warned that if local marketers and the Nigerian National Petroleum Company (NNPC) Limited continue to resist purchasing from Dangote Refinery, the company would be compelled to export its petroleum products, including Premium Motor Spirit (PMS).
Edwin mentioned that the refinery has already started producing PMS and is ready to supply it locally. However, a blockade by local traders has hindered the distribution of Dangote Refinery’s products within Nigeria. He emphasized that if this situation persists, the refinery may have no choice but to export PMS, just as it has done with aviation fuel and diesel.