Petroleum marketers in Nigeria have raised concerns about the current diesel price offered by Dangote Refinery, which they claim is negatively affecting their businesses. The refinery, owned by Dangote Industries Limited, has lowered its diesel price from N1,200 to N900 per litre. While this may seem like a benefit to consumers, many local petroleum product importers have complained that the lower price is hurting their profitability.

This issue was brought to light by Devakumar Edwin, Vice President of Dangote Industries Limited, during a Twitter Spaces session organized by Nairametrics. Edwin revealed that local marketers had even taken their complaints to President Bola Tinubu. They argue that the new price is making it difficult for them to compete in the market.

Despite the price drop, Dangote Refinery is struggling to sell as much diesel as expected within the country. Edwin mentioned that the refinery is only selling around 29 tankers of diesel per day due to low patronage from local marketers. This lack of demand has forced the refinery to export most of its diesel, along with other products such as aviation fuel and kerosene.

Edwin also explained that the refinery had recently started producing petrol (PMS) after successfully producing diesel and other fuels. However, due to what he described as a “blockade” from local traders and the Nigerian National Petroleum Company Limited (NNPC), the refinery has been exporting much of its output instead of selling it within Nigeria.

While Dangote Refinery is prepared to supply large quantities of petrol to the local market, Edwin warned that they might have to export the petrol if local traders and the NNPC continue to refuse to buy their products. He expressed disappointment that the refinery has faced unexpected challenges since it started operations but remains hopeful that local demand will increase.

In conclusion, Dangote Refinery has made significant strides in producing fuel for Nigeria, but without strong local support from marketers and the NNPC, the company may have to continue focusing on exports. The debate over the diesel price highlights the complex dynamics within Nigeria’s petroleum industry, where balancing local supply, pricing, and competition remains a challenge.