Emmanuel Ochayi
Oil marketers across Nigeria continue to sell diesel at higher prices, citing various reasons for the delay in reducing pump prices Despite multiple price cuts by Dangote Petroleum Refinery.
Dangote Petroleum Refinery announced on Tuesday a further reduction in diesel prices to N940/litre, down from N1,000/litre. This move followed earlier price reductions, with diesel selling for N1,200/litre just weeks ago.
Join our WhatsApp ChannelHowever, despite these significant reductions, many filling stations are still selling diesel between N1,350/litre and N1,450/litre.
The refinery’s spokesperson, Anthony Chiejina, highlighted the company’s commitment to easing economic hardships in Nigeria through these price cuts. He also mentioned a strategic partnership with MRS Oil and Gas to ensure affordable fuel prices across their stations.
“The price change of N940 applies to customers buying five million litres and above from the refinery, while the price of N970 is for customers buying one million litres and above,” He said
While industry leaders like President Bola Tinubu praised the refinery’s efforts, others, like Ajayi Kadiri from the Manufacturers Association of Nigeria, emphasized the positive impact on various sectors, including industrial operations and transportation.
READ ALSO: Dangote Refinery Again Reduces Diesel, Aviation Fuel Prices To N940, N980
Despite commendations, oil marketers have yet to fully reflect these price cuts at the pumps. Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria, acknowledged the reductions but pointed out that existing old stock purchased at higher prices still influences current pricing.
Maigandi explained that many marketers bought diesel at previous rates, such as N1,225/litre, and are yet to exhaust their old stock. This, coupled with operational costs, prevents an immediate adjustment of pump prices.
“Marketers are happy about the reduction in the price of diesel from the Dangote refinery but still we are appealing to him to further reduce the price. Let them try as much as possible to see how we can get it at N800/litre.
“However, we must state that he has tried and marketers are happy because of the reductions being carried out by Dangote refinery since they started releasing diesel into the domestic market,” Maigandi said
Clement Isong, the Executive Secretary of the Major Energies Marketers Association of Nigeria, elaborated on the complexities involved in setting retail prices, including financing, transportation, and operational expenses. He stressed that marketers cannot sell at a loss, considering their business overheads.
“Dangote sells its product at the loading rack at that price. The marketer has to borrow money to buy that product and hire a transporter to move that product to his filling station. To recover the cost of building, running his filling station, paying his staff, and adding a margin to it to sell to the public, diesel is a very slow-moving product. It is in your tank for several weeks without people buying and you are paying financial costs on it, all those costs are added.”
“If he is delivering to you in your location, it is cheaper because you are not going to pay the storage cost or the maintenance cost. You just take it from Dangote, you need to finance it and pay for the transport to deliver it to your location. He drops it with you, and you pay.”
Despite the refinery’s efforts, diesel prices remain high across Nigeria. In Enugu, prices range from N1,350 to N1,500/litre, while in Ilorin, it’s between N1,380 and N1,550/litre. The situation is similar in other regions, with diesel prices ranging from N1,350 to as high as N2,350/litre in Zamfara.
Customers, like James John, express skepticism about reported price cuts, claiming that actual prices remain unaffected. They allege tampering with fuel meters to maintain higher prices.
“I have heard of the slash in diesel price but that is only in the newspapers. If you go to stations you will know that the said price slash is a mare political talk.
“Today I bought diesel in three filing stations and the prices remained the same. For any station selling below N1,600/litre, their meter has been tampered with. Because of lack of regulations, petroleum dealers now do anything and get away with it.”
This disparity between announced price cuts and actual pump prices underscores challenges in Nigeria’s fuel distribution system, highlighting the need for better regulation and transparency. Until these issues are addressed, consumers may continue to bear the brunt of high fuel prices despite efforts to reduce them.
