Dangote Diesel Prices Palaver

 

There was palpaple excitement  across the nation recently when Dangote Refinery announced a crash in the price of diesel, first, from N1600 per litre market price to N1,200 and then to N1,000.

But while keen market watchers then ascribed the crash in price to the renewed strength which the naira recorded  Nigerians simply gave all the praises to Dangote  refinery for bringing down diesel prices at a time that it was mostly needed. 

While Dangote Refinery deserves part of the accolades for the relief the price reduction has brought, industry watchers are however contending that in matters of prices, the giant Refinery company can do better, not just for Nigeria, but the entire West African market.

These experts are raising issues and asking questions on why the Dangote Refinery is selling its diesel 50 US Dollars cheaper to foreign companies than to local companies.  They insist that this  situation short changes Nigerians and cannot be defended.

They contend that the Nigerian market particularly deserves a better deal given that the Dangote Refinery enjoys a waiver which allows the Refinery to pump into the market diesel with a sulphur content as high as 700pm, while regulators allow a maximum of 200pm sulphur content for products  imported into the country.

The question is: why sell  to local buyers at a price higher than what you sell to foreign buyers? The Dangote Refinery will have to address this issue frontally and reassure Nigerians that the giant refiner is not totally averse to any consideration of national interest in business.

By Ali Mohammed