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Marketers praise Dangote refinery for price reduction
From Adanna Nnamani, Abuja
The Minister of State for Petroleum Resources, Heineken Lokpobiri, has stated that the government’s priority in the oil sector lies not in controlling fuel prices but in ensuring quality control, availability, and fair dispensation of fuel.
Speaking to journalists during the Petroleum Industry Stakeholders’ Forum in Abuja on Thursday, Lokpobiri explained that the varying petrol prices across Nigeria are a direct result of the successful deregulation of the sector, which he described as essential for the industry’s growth.
He said: “The whole essence of deregulation is for price to find its place. Before now, every day we hear negative news about fuel subsidies, but that does not happen anymore because the market is deregulated, and price will find its place and when global price goes up, it goes up and when it comes down, it comes down.”
The Minister stressed that the government’s main concern is not setting prices but maintaining industry standards.
“What the government is more interested in is quality control, availability, dispensation of the right quantity, so that if you are buying 10 litres of fuel, let it be that you are not shortchanged, and that is why there is competition. When there is competition, people have the choice of buying wherever they like no matter the price,” he said. “That is the real essence of deregulation, so nobody in a deregulated market can tell you that prices will come down or will not come down.”
To further strengthen the sector, he said the government has launched the ‘Petroleum Industry Stakeholders Forum,’ a platform aimed at addressing industry challenges.
Lokpobiri stressed the need to increase crude oil production and ensure product availability, pointing out that while the sector is not yet where it needs to be, significant progress is being made.
He also mentioned efforts to resolve policy conflicts between agencies and tackle the high taxes and levies affecting the industry.
Meanwhile, independent petroleum marketers have credited the recent reduction in petrol prices to a partnership with the Dangote refinery.
Abubakar Maigandi Shettima, president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that members of the association have been sourcing fuel from Dangote’s refinery in collaboration with MRS filling stations since late last year.
This partnership, Shettima explained, has led to a reduction in retail prices across the country.
Petrol prices, which surged to as high as N1,200 per litre following the removal of the subsidy, have now dropped below N1,000 in some parts of the country.
Shettima attributed the price reductions to the collaboration with Dangote and MRS. “We have been loading the Dangote refinery with the MRS. We have an agreement between MRS, Dangote and independent marketers, that is why we sell at a lower price than other marketers because of the partnership with Dangote, and we have a uniform price everywhere in the country, we sell at a price of N935 per litre,” he said.