Oil Marketers Seek Diesel Price Reduction as Dangote, Dealer Meet

In a bid to address soaring diesel costs, oil marketers are urging for a review of the pump price of Automotive Gas Oil (diesel) produced by the Dangote Petroleum Refinery. They advocate for a reduction to between N700 and N850 per liter. The call for a downward revision comes ahead of an anticipated meeting between industry operators and refinery management scheduled for next week.

The Independent Petroleum Marketers Association of Nigeria (IPMAN), the largest downstream marketing association, raised concerns about the high price of diesel from the indigenous refinery, currently pegged at N1,225 per liter. They argue that since the commodity is locally produced, its price should reflect lower costs compared to imported alternatives.

Similarly, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) echoed the demand for a reduction in the price of Dangote diesel. Both groups emphasize the need for the Federal Government’s intervention and urge refinery managers to consider the logistical challenges in distributing the product across the country.

Oil marketers highlight that the appreciation of the naira against the dollar has reduced landing costs for imported diesel, making the case for a corresponding reduction in the price of locally produced diesel from the Dangote refinery. They assert that unlike imported diesel, Dangote’s product does not incur vessel costs, import charges, or foreign exchange fluctuations.

Recent reports indicate that the Dangote refinery commenced the sale of diesel to registered oil marketers, with prices ranging from N1,225 to N1,300 per liter, depending on the volume of purchase. While this move has been welcomed, oil marketers emphasize the need for a more competitive pricing strategy to alleviate the financial burden on consumers.

Chief Chinedu Ukadike, the National Public Relations Officer of IPMAN, commended the refinery’s efforts but stressed the importance of aligning prices with local production costs. He underscored the potential impact of lower diesel prices on the economy, citing benefits such as reduced transportation costs and enhanced economic activities.

Meanwhile, PETROAN President Billis Gillis-Harry emphasized the need for collaborative discussions between the association and refinery management to explore cost reduction strategies while ensuring the refinery’s financial viability.

As discussions unfold, stakeholders anticipate a concerted effort to address pricing challenges and foster a sustainable framework for petroleum product distribution. With the impending meeting between oil marketers and refinery officials, industry players remain hopeful for constructive dialogue and tangible solutions to address prevailing concerns over diesel prices.

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