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The Nigerian billionaire and owner of the US$20 billion Dangote refinery, Aliko Dangote, recently explained why fuel prices in Nigeria have plummeted after a year of constant price hikes.
Dangote explains the drop in fuel prices in Nigeria during festive season.
Reduction in petrol prices due to market forces and need to protect refinery’s interests and investment.
Dangote refinery announced reduction in ex-depot price of petrol to N899.50 per litre.
The president of the Dangote group revealed that the price drop for Premium Motor Spirit (petrol) during the festive season was brought on by market forces as opposed to deliberate efforts by marketers to ease the economic burdens that come with the festive season.
During an interview on Arise TV, the Nigerian billionaire highlighted that he too must protect the interests of his refinery.
“The price reduction is a response to the market, let me just put it that way. It is a refinery where we invested over US$20 billion and I think we have to try and protect our interests and also our investments,” he said. On December 19th the Dangote refinery announced a reduction in the ex-depot price of petrol, to N899.50 per litre.
The downstream industry saw fierce pricing competition as a result, which compelled NNPCLto to lower its ex-depot price to N899 per litre.
To the pleasure of Nigerians, the refinery also announced that it will be partnering with MRS fuel station to offer fuel from its retail locations countrywide for N935 per litre. During the interview, he also said that petroleum imports have a big impact on Nigeria’s foreign exchange, as seen in the Punch Newspaper. —Business Insider Africa.
Online Reporter