‘It’s not just Hormuz’, Dangote explains why petrol is expensive in Nigeria
Nigeria’s petrol market may face a more serious challenge with product availability than price as geopolitical tensions continue to unsettle the global energy market. The warning came from President of Dangote Industries Limited, Aliko Dangote. Dangote said the ongoing crisis in the Middle East could put pressure on petroleum supply chains, potentially shifting attention from […]
The ongoing crisis in the Middle East could significantly impact Nigeria's petrol market, according to Aliko Dangote, the President of Dangote Industries Limited. Dangote explained that the focus should not be solely on the high price of petrol, but rather on the availability of the product. He warned that geopolitical tensions could disrupt petroleum supply chains, potentially leading to shortages.
Dangote highlighted that the price of petrol in Nigeria is substantially lower than in neighboring countries, which has incentivized the movement of Nigerian petrol across borders. This illicit trade is made attractive due to the price gap, which ranges between 30 and 50 percent. For instance, petrol in Niger Republic can sell for 20 to 25 percent more than in Nigeria.
Dangote emphasized that such a price difference makes the illicit trade highly attractive. Despite these challenges, he assured that his refinery would continue supplying the domestic market, promising that there will be no shortage from their part.
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