Naija247news reports that a looming crisis may hit Nigeria’s petroleum sector as fuel marketers threaten to halt the purchase of petrol from the Dangote Refinery. This development follows the skyrocketing cost of imported petrol, which now stands at an alarming ₦922 per litre, creating tensions within the downstream oil sector.
Thank you for reading this post, don't forget to subscribe!Naija247news gathered that fuel marketers are expressing concerns over the pricing disparity between locally refined products from the Dangote Refinery and imported petrol. According to Naija247news, the high cost of importing fuel, exacerbated by exchange rate fluctuations and logistics expenses, has pushed operating costs to unsustainable levels for marketers.
Naija247news understands that the marketers argue that despite the Dangote Refinery being a local operation, its prices are not competitive enough to offset the growing financial strain caused by importing petroleum products. They claim that relying on the refinery alone may not be sufficient to stabilize the supply chain or ease the burden on consumers.
According to Naija247news, stakeholders in the sector are concerned that the rising cost of petrol could trigger a ripple effect on transportation and other essential services, further deepening Nigeria’s economic challenges. The potential shift by marketers away from Dangote Refinery products could also intensify supply shortages and create instability in the already volatile fuel market.
Naija247news reports that industry experts are urging the federal government to intervene by addressing the systemic challenges driving up fuel importation costs. Suggestions include revisiting the current subsidy framework, improving the efficiency of local refining processes, and stabilizing foreign exchange rates to ease pressure on marketers.
Naija247news gathered that the Dangote Refinery, which began operations in 2023, was anticipated to reduce Nigeria’s reliance on imported petrol and strengthen the nation’s energy independence. However, the ongoing challenges highlight the complexities of achieving these goals in the face of global oil price dynamics and domestic economic realities.
Naija247news understands that while consumers are already grappling with the high cost of living, the possibility of further increases in fuel prices remains a major concern. Observers are closely watching developments in the sector, with many calling for urgent collaboration among stakeholders to prevent a full-blown fuel crisis.
Naija247news reports that the tension underscores the critical need for sustainable energy policies to protect Nigeria’s economy and ensure a steady supply of affordable fuel for its citizens.
