Marketers claim the Dangote refinery was built to sell expensive fuel to Nigerians

Nigerian fuel traders have raised concerns over the pricing model at the new Dangote refinery, arguing that it is geared towards selling fuel at high prices to local consumers. According to marketers, the refinery price structure has been aligned with international tariffs, resulting in higher fuel prices in Nigeria. They argue that rather than making fuel cheaper, the refinery appears to be prioritizing global profitability, especially in overseas markets where it can sell petroleum products at competitive prices.

The refinery, which is the largest in Africa, has the potential to significantly reduce Nigeria’s dependence on imported fuel by processing crude oil locally. However, due to adherence to international pricing standards, many Nigerians may not see the expected relief from high fuel costs that they had hoped for.

This has sparked debate over whether the refinery will bring the expected economic benefits to the country, especially given the promises of reduced dependence on imports and lower fuel costs for Nigerians.

The issue comes amid wider challenges in Nigeria’s oil sector, including the removal of subsidies and fluctuations in global oil prices, which are already creating a financial burden on Nigerian citizens. High fuel costs have also contributed to rising inflation, affecting the cost of living across the country.

Edited from Punch