Olabode Sowunmi, an Oil and Gas Expert, has shed light on tensions arising in Nigeria’s petroleum industry following the operational commencement of the Dangote Refinery. In a recent interview with Arise TV, Sowunmi revealed details of a meeting involving refiners and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), where significant concerns were raised about Dangote’s pricing strategy....CLICK HERE TO CONTINUE READING.>>
According to Sowunmi, an importer expressed anger over Dangote’s decision to reduce diesel prices from N1,200 to N800 per liter when his refinery began operations. The importer had already procured two vessel loads of imported diesel and was about to start refilling wells when the price slash occurred, causing significant financial concerns.
Thank you for reading this post, don't forget to subscribe!Sowunmi quoted the importer’s perspective: “There was one of the importers who was angry that Dangote reduced his diesel price from N1200 to N800. He said that he had brought two vessel loads of imported diesel and that it was at the point of just starting to refill into their wells, Dangote reduced the price from 1,200 to N800.”
The importer viewed this price reduction as a deliberate attempt to undermine his business, especially considering the substantial investments made, often backed by loans. “So as far as they are concerned, there was a calculated attempt to take them out of business because basically they have spent so much billions which are also based on the letters of loans and all that,” Sowunmi explained.
The expert also noted that other complaints were lodged with the regulator. However, due to the confidential nature of the NMDPRA’s operations, not all details could be publicly disclosed. “There were complaints that went to the regulator and you know that the regulator operates in an air of confidentiality. So it is not everything that they know that they can bring to the public,” Sowunmi stated.l
Start Watching The Video From Minute 7:45)
