Vice President, Dangote Industries Limited, Devakumar Edwin, has said that marketers of petroleum products in Nigeria, have complained to President Bola Tinubu that the company’s diesel remains too cheap at N900 per litre
Dangote refinery has consistently reduced the price of the product from N1,200 to N1,000 and now N900 per litre, in the past few months, thus affecting revenue and margins to marketers.
Speaking at a Twitter Spaces session organized by Nairametrics, Edwin said the refinery, currently struggles to sell about 29 tankers of diesel daily, due to low patronage from marketers of petroleum products.
He said: “Petroleum product marketers in Nigeria have written to President Bola Tinubu to complain that the refinery local prices which have dropped from N1,200 to N1,000 and now N900 per litre are impacting their businesses negatively.”
Edwin highlighted some challenges facing the Dangote Refinery while stressing its impact on Nigeria’s fuel supply and prices.
According to him, the refinery, located in the Lekki Free Zone near Lagos struggles to sell about 29 tankers of diesel daily because of low patronage from local petroleum product importers.
He said: “As a result of this poor local patronage, the refinery exports most of its diesel and aviation fuel.
“We have been exporting aviation fuel, we have been producing kerosene, we have been producing diesel, but yesterday, we started the production of PMS. So, that was the last stage. The only thing now left out is petrochemicals.
“So, the good news for the country is we have started producing PMS from our refinery,” he had said on a radio programme.”
He also said: “But if the traders or NNPC are not buying the product we will end up exporting the PMS as we are doing with the aviation jet and diesel.
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