Nigerian fuel distributors have complained to President Bola Tinubu about the lower cost of local diesel produced by Dangote Refinery, arguing that this is hurting their company’s bottom line. According to Daily Trust, The marketers are struggling to compete with the refinery’s low price of N900 per liter, according to Devakumar Edwin, Vice President of Dangote Industries Limited.CONTINUE FULL READING>>>>>
Dangote Refinery is facing challenges in selling approximately 29 tankers of diesel per day due to low patronage from local petroleum product importers.
As a result, the refinery exports most of its diesel and aviation fuel. However, despite these challenges, the refinery’s petrol production capacity is sufficient to meet 44% of Nigeria’s local demand.
The marketers’ complaints highlight the competitive landscape of Nigeria’s petroleum industry and the impact of Dangote Refinery’s pricing strategies on local businesses.
As the refinery continues to expand its operations, it remains to be seen how the market will respond to these changes.
The refinery’s low prices may force other marketers to reduce their prices, leading to a potential price war.CONTINUE FULL READING>>>>>
