The Digest:
A fierce price war has broken out in Nigeria's petroleum market as importers drop petrol prices below what the Dangote Refinery offers, directly challenging the billionaire's call for a ban on fuel importation. This aggressive move by marketers signals a crucial test for market liberalization and President Bola Tinubu's "Nigeria First" policy.
Key Points:
- Some filling stations in Lagos and Ogun States are now selling petrol for as low as N847 per liter, while Dangote's partners sell for N865 or N875.
- Depots run by importers like Aiteo and Menj are selling petrol at N815 per liter, a price lower than Dangote’s N820 per liter ex-depot price.
- This competitive pricing is a response by importers to stay in business and counter Dangote's earlier price cuts.
- The President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, hailed the development as the "beauty of market liberalisation" and cautioned against a ban on importation.
- Aliko Dangote has been vocal in his opposition to fuel importation, arguing it is "killing local refining" and leading to the dumping of "toxic" and substandard fuel from sources like Russia.
- Dangote urged the government to apply the "Nigeria First" policy to the petroleum sector to protect domestic producers from what he calls "unfair competition."
- Marketers, however, warn that a ban could lead to a monopoly and disrupt the stability of fuel supply, insisting that local refining must be strengthened through competition.
Sources: Punch Newspapers
