Against the backdrop of escalating cost of doing business oil marketers have started pushing for a reduction in the pump price of diesel to N700 per litre to help improve the distribution of petroleum products across the country.The President of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), Mr. Benneth Korie Doi, yesterday in Abuja, stated that the high cost of diesel used by trucks is a significant barrier to the efficient distribution of products nationwide.
The country has been experiencing another round of petrol scarcity for over six weeks, with NNPC Limited attributing the shortage to distribution challenges.
Doi said: “Regarding the prices of Automated Gas Oil (AGO), with Dangote’s refinery production and crude oil transactions in Naira, we expect a reduction in AGO prices. NNPC should leverage its shares in Dangote’s refinery to drive down these costs, which will, in turn, lower transportation expenses and reduce market prices.”
He emphasized the need for the government to create a competitive downstream sector in the petroleum industry, arguing that monopolies are detrimental.
According to him, “We must foster a competitive environment to ensure the healthy circulation of petroleum products. I commend Aliko Dangote for his monumental contribution to our industry through the establishment of the largest refinery in Nigeria.
“This development promises substantial benefits, including enhanced supply, increased competition, and a boost to our national economy and currency.
“To ensure balanced distribution, I urge that Dangote’s refined products be made available to a broader range of stakeholders, including NNPC Trading, NNPC Retail, DAPPMAN, MOMAN, IPMAN, PETROAN, and NOGASA. This inclusivity will facilitate sustainable and widespread distribution across the country,” he added.
