05 Feb
No Enough Crude in Nigeria, Prices Will Be Determined by International Market –Dangote
•Prices May Not Rise –MEMAN
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said the resort of the 650,000 barrel-per-day Dangote Refinery to the United States for crude importation will increase the prices of petroleum products in the country. IPMAN’s National Public Relations Officer, Mr. Ukadike Chinedu, in an interview with Sunday Telegraph over the weekend, decried that Nigerians were currently suffering from sky- rocketed fuel pump price as a result of the unilateral removal of fuel subsidy by President Bola Tinubu during his inaugural speech on May 29, 2023. According to him, hopes were high that with local refining, prices of petroleum products would be reduced. He, however, said that it was worrisome for Dangote to buy crude from the US. He noted that with the crash of the Naira and the high cost of freight and other associated charges involved in international shipping and business, Nigeria could witness more increases in the prices of petroleum products. Chinedu said: “It will increase the price of petroleum products.
The problem we are facing is policy making and implementation. What is the essence of building Dangote refinery and we still go to the US to buy crude? It is very unfortunate and not good for us. It also means that we are not robbing Peter to pay Paul. The product is being exported from here to other countries. Still, we are now going to US to import crude when Nigeria is an oil producing state. It is very ridiculous. I believe that in the earliest distance, Nige- ria should rethink and talk about it.” Bloomberg had reported that Dangote Refinery was planning to import crude oil from the United States in the forthcoming months. Blomberg, quoting traders familiar with the matter, had said that Trafigura Group has sold 2 million barrels of WTI Midland to the Dangote refinery for delivery by the end of February, which will mark the first time the refinery bought non-Nigerian crude.
Reacting to the development in an interview with Sunday Telegraph, Group Head, Corporate Communications at Dangote Group, Anthony Chiejina, said the refinery resorted to crude oil importation from the US because there was not enough crude for its purpose in the country. He, however, said resorting to the US for crude imports may not increase prices of petroleum products, as according to him, prices will be determined by the inter- national market. Chiejina said: “If you have this, why should somebody go elsewhere and pick? It is NNPC Ltd you should be asking. “I do not know about that. Even if you are buying it from Nigerian National Petroleum Company Limited (NNPC Ltd), is it going to be cheaper? It is international market price determined.”
