Is Dangote Colluding with Marketers to Keep PMS at N765 and upwards?
As of Sunday, September 15, 2024, the Nigerian National Petroleum Corporation Limited (NNPCL) will begin lifting Premium Motor Spirit (PMS) from the Dangote Refinery, selling it to oil marketers at a steep price of N765 per liter. While the refinery is expected to supply 25 million liters daily, NNPCL will continue importing 15 million liters to meet demand. By the end of October, Dangote’s supply is projected to rise to 35 million liters, while NNPCL reduces importation to 5 million liters before eventually phasing out imports entirely.
However, the burning question remains: Why should locally refined PMS be sold at such a high price? Many had expected local refining to significantly reduce costs, yet the public is left paying the same exorbitant prices as when the product was imported. This disconnect between expectation and reality has led to increasing scrutiny and a disturbing question—are there forces at play that are deliberately keeping the price of fuel inflated?
There have been allegations that Dangote, along with oil marketers and importers, is working together to keep prices high, despite the shift to local production. The possibility that such a collaboration exists to maintain inflated fuel prices has sparked outrage, leading to demands for an investigation.
The primary reason for establishing local refineries like the Dangote Refinery was to cut the added costs of importing refined petroleum products. These include costs related to shipping, insurance, and foreign exchange fluctuations, which have traditionally contributed to the high price of fuel in Nigeria. With these costs eliminated, the public had hoped for relief at the pump. Yet, the reality has been far different.
The suspicion that Dangote may be taking advantage of his near-monopoly position in Nigeria’s refining sector raises alarm. Currently, his refinery is the dominant player, giving him considerable control over pricing. Without competition, there is little incentive to reduce prices, allowing Dangote and oil marketers to set prices without fear of undercutting. This scenario, if true, would amount to price manipulation on a national scale, harming everyday Nigerians while benefiting a select few in the oil industry.
Furthermore, NNPCL’s role in the distribution chain also comes under scrutiny. While they continue to import PMS for the time being, their influence over the market may wane as Dangote increases his supply. If NNPCL phases out importation altogether, Dangote’s position will only strengthen, giving him even greater control over Nigeria’s fuel pricing.
There is an urgent need for transparency and accountability in determining PMS prices. Nigerians deserve to know exactly how these prices are calculated, from production costs to distribution and profits. Without this transparency, suspicion of price manipulation will continue to grow, eroding public trust in both the government and the corporations involved.
Encouraging competition in the refining sector is another critical step. Dangote’s refinery cannot be allowed to dominate the market unchecked. Other players must be encouraged to enter the industry, bringing competition that could drive down prices.
Government regulation and oversight will be crucial in ensuring that PMS prices reflect the true costs of production and distribution, rather than excessive profiteering by a few. Regulatory bodies must be empowered to investigate any potential instances of price manipulation and hold those responsible accountable.
The allegations of collusion between Dangote and oil marketers must also be investigated thoroughly. The Nigerian public deserves to know whether these claims are valid, and if they are, steps must be taken to break the cartel and restore fair pricing in the fuel market.
Ultimately, the high price of PMS affects every aspect of daily life in Nigeria. From transportation to the cost of goods, inflated fuel prices drive up the cost of living, disproportionately impacting the most vulnerable citizens. If this price inflation is the result of collusion between corporate interests, it represents a profound betrayal of the Nigerian people.
The next few months will be critical in determining whether Nigeria can finally benefit from its own fuel production or if the shift to local refining will only replace one form of exploitation with another. Nigerians need transparency, competition, and a commitment from their leaders to prioritize the welfare of the people over corporate profits.
Hon. Chimazuru Nnadi-Oforgu
“Duruebube Uzii na Abosi”
http://www.oblongmedia.net
#oblongmedia
OBLONG MEDIA UNLIMITED 
Leave a comment