There are palpable indications that the Tinubu govt may have requested for a huge shares of Dangote refinery, which is the biggest single built refinery in the world
Recall that it was alleged that, the Buhari govt may have contributed hugely to the construction of the refinery, using the Ika Born Banker, and the former Central Bank Governor, Mr. Godwin Emefiele to actualize the construction
This may be unconnected to the delay of the production of Premium Motor Spirit, PMS, amidst expectations of Nigerians to have it available and have the fuel price reduced
Recall that immediately President Bola Ahmed Tinubu got into office, Subsidy was removed, thereby increasing the cost of the PMS, inducing hardship and hunger in the country
Digging into the delay of the production of fuel in the country, which Nigerians believe would affect the reduction of the cost fuel in the country, this medium gathered that, Dangote had not gotten supply of crude oil from local source and has thwarted production and supply to amiolorate high cost of fuel
Dangote while reacting to the speculation, insisted that NNPCL was blending products in Malta, which was why vehicles were having problems in the country
Recall also that, the operators in the downstream oil sector on monday, disclosed that they were seeking federal government intervention to ensure that crude oil was sold to Dangote refinery to avoid the importation of cheap petroleum products rather than patronizing Dangote refinery
The downstream operators also slammed the international oil companies operating in Nigeria for selling crude oil to Dangote refinery above the global market prices, describing this as anti country practices
Our source disclosed that one of the major reasons why independent marketers were shunning Dangote diesel and aviation fuel was because it was which could have be attributed to the cost of importation
The National President, IPMAN, Abubakar Maigandi, stated this while reacting to claims by the Dangote refinery that it had sold about 3.5 billion liters of refined products to Europe and other countries because some marketers were importing dirty fuels into Nigeria.
According to Maigandi, the refusal of the President of the Dangote Group, Aliko Dangote, to collaborate with IPMAN is another factor affecting the $20bn refinery.
Another source also hinted to our reporter on Monday that the Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, had accused international oil companies in Nigeria of plans to frustrate the survival of the new Dangote refinery.
Edwin said the Federal Government issued 25 licenses for the construction of refineries in Nigeria, but only the Dangote Group delivered on its promise.
He, however, noted that more than 3.5 billion liters of Dangote diesel and aviation fuel had been exported to Europe by the refinery in the past few months, being 90 percent of its output.
But the IPMAN leader, while speaking with one of our correspondents on Monday, blamed Dangote for the importation of diesel by operators, saying his (Dangote) diesel is more expensive.
Maigandi disclosed that Dangote did not heed the advice of marketers that the current price of diesel and aviation fuel be reduced to beat competitors in the market.
The IPMAN boss maintained that nobody would be encouraged to import the so-called dirty fuel if the products from Dangote refinery were cheaper.
“The major challenge is the cost of the Dangote diesel. We are looking for a reduction from him. He should bring it to a little bit lower rate.
“The fact that people bring in diesel from other countries into Nigeria is his fault. It is because of his price. You know I said earlier that he should bring his price down so that he would discourage importation by the other marketers. His price is higher. If it is lower, why should people buy outside?” the marketer stated.
The Dangote refinery official had accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of granting licenses indiscriminately to marketers to import dirty refined products into the country.
The NMDPRA has since stayed mute on this, ignoring several calls for its reaction to this allegation.
Edwin had said the NMDPRA continued to issue import licenses at the expense of the nation’s economy and at the cost of the health of Nigerians “who are exposed to carcinogenic products.”
Edwin lamented that even though Dangote was producing and bringing diesel into the market, complying with the regulations of the Economic Community of West African States, “licenses are being issued, in large quantities, to traders who are buying the extremely high sulfur diesel from Russia and dumping it in the Nigerian market.”
He reiterated that as much as a quarter of the petrol and diesel available in West Africa originated from the ports of Amsterdam, Rotterdam, and Antwerp, stressing that these fuels contain sulfur and other pollutants, such as cancer-causing benzene, in quantities up to 400 times the limits permitted in Europe.
Edwin said, “The decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority to indiscriminately grant licenses for the importation of dirty diesel and aviation fuel has made the Dangote refinery expand into foreign markets.
“The refinery has recently exported diesel and aviation fuel to Europe and other parts of the world. The same industry players fought us for crashing the price of diesel and aviation fuel, but our aim, as I have said earlier, is to grow our economy.”
Meanwhile, the IPMAN president stated that Dangote refused to sign a deal with the independent petroleum marketers for the distribution of its products.
Despite efforts to enter into a business agreement with him, Maigandi said Dangote held on to multinationals whom he said were sabotaging his efforts.
“Again, we gave him a policy that he should involve independent petroleum marketers in direct purchases from him. Up till now, he didn’t do that.
“The idea is, immediately you hold independent petroleum marketers, definitely you are the one who is having the market of the country.
“We told him that he should allow independent marketers to start buying fuel directly from him, but he refused. He just holds on to all these multinational companies.
These multinational companies will sabotage his efforts because they will tell him that they would buy, but if they buy a little from him, they will go outside to buy another one that is cheaper than his own,” he stated.
Maigandi said Dangote currently sells his refined products through MRS, some depot owners and other major marketers.
“But it is better he sells to us directly because anywhere he takes his product to, independent marketers are buying it there. And when we buy, those selling it in those places will also add their profit margin, making the product a bit higher. He should use independent petroleum marketers to sell his products,” Maigandi advised.
Meanwhile, an official of the Dangote Group, who spoke on conditions of anonymity because he was not authorized to speak on the matter, said the importation of crude oil from the United States should be blamed for the diesel price.
While saying Dangote could not sell his products below the cost price, the official stated that international oil companies were denying Dangote access to crude oil to frustrate the refinery.
“If Dangote gets crude oil locally, there wouldn’t be any issue. You know Dangote is importing with dollars. So, there is no way Dangote will sell below the cost price. But these traders are importing dirty fuels from Russia at a cheaper price.
“If the Federal Government allows us to buy in Nigeria, it will be cheaper. What we need to do is just to refine and sell. But in this case, we have to import from the US, so it’s very expensive. Some people are just playing politics with this thing to frustrate the refinery,” the Dangote Group official stated.
