Dangote Schedules Meeting With Oil Marketers Amid Rising Diesel Prices

Dangote Schedules Meeting With Oil Marketers Amid Rising Diesel Prices....KINDLY READ THE FULL STORY HERE▶

Aliko Dangote, the founder of Dangote Petrochemical Refinery, is set to engage with petroleum marketers in the coming week to address various concerns, including pricing strategies for petroleum products originating from the refinery.

This decision came following separate meetings held by marketers, represented by the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), on Monday.

Marketers have particularly emphasized the need for a reevaluation of the pump price of Automotive Gas Oil, commonly known as diesel, produced by the Dangote refinery, which currently ranges between N700 and N850 per liter.

In discussions with The Punch, an IPMAN official noted that the current price of N1,225 per liter for diesel from the indigenous refinery seemed inflated, especially considering its local production.

There’s a plea for government intervention, with marketers urging Dangote refinery management to consider the significant logistics costs involved in transporting the product from its Lagos base.

Comparatively, some importers are reportedly selling diesel at N1,250 per liter, benefitting from the strengthened value of the naira against the dollar. This presents a compelling argument for Dangote refinery to reconsider its pricing strategy, given that its locally produced diesel doesn’t incur additional vessel costs or import-related charges.

The oil marketers stress that diesel from the Dangote refinery, being domestically produced, should reflect lower costs compared to imported alternatives.

As discussions unfold, stakeholders anticipate a balanced approach that addresses market dynamics while ensuring fair pricing for consumers.

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