Succour may have come the way of Nigerians following the announcement that a litre of fuel may now be sold for nine hundred and seventy naira (#970.00) to marketers by the Dangote refinery, compared to the previous nine hundred and ninety naira (#990.00) price. We are also elated that the government has announced the readiness of the Port Harcourt refinery to commence operations. This also implies that the sector will no longer be monopolised by individual operators, going forward.
As cheering as this news is, we still urge the government, and all stakeholders in the oil sector to do more and ensure that the ongoing price war is stabilised once and for all. We also request that this reduction in price takes immediate effect, even as we call for further efforts to safeguard the livelihoods of many Nigerians whose survival depends on this essential commodity. The price reduction by Dangote was contained in a press statement issued by Anthony Chiejina, the Group Brand and Communication Officer of Dangote Refinery.
The statement emphasised: “As the year comes to an end, this is our way of appreciating the good people of Nigeria for their unwavering support in making the refinery a dream come true. In addition, this is to thank the government for their support, as this will complement the measures put in place to encourage domestic enterprise for our collective well-being. While the refinery would not compromise on the quality of its petroleum products, we assure you of the best quality products that are environmentally friendly and sustainable.”
Interestingly, while this was happening, the Minister for Finance, Wale Edun, announced that the government has saved up to $20 billion since the removal of the oil subsidy. Whether this announcement was a coincidence or part of a deliberate plan to carry Nigerians along, only time—and what the money will be used for—would tell. We are yet to hear from the Nigerian National Petroleum Company Limited (NNPCL) regarding this marginal price reduction announced by Dangote.
This is especially important because, since the subsidy removal, the price of a litre of fuel has varied significantly across states and locations, with the authorities failing to address the imbalance in the system. It is an understatement to say that Nigerians have gone through great hardship since the subsidy saga began. In fact, people are confused about the actual price of a litre of fuel because what is sold today may differ from what would be sold tomorrow.
This inconsistency is the harsh reality everyone faces. Furthermore, the removal of the oil subsidy has significantly lowered living standards and negatively impacted on businesses. The society has been turned upside down, economically, owing to the central role oil plays in people’s lives, and as the country’s primary source of revenue. The lack of transparency, accountability, and sincerity in addressing issues in the oil sector remains the greatest challenge confronting our society. Both previous and current governments seem unwilling to loosen their grip on the oil sector, driven by the need to protect the interests of a few, often at the expense of the masses.
Since the new refinery came on stream, there has been an ongoing debate between Dangote and the NNPCL over pricing and product quality. We hope that the marginal price reduction announced by Dangote will be sustained, particularly during this festive season when many Nigerians would be travelling to celebrate Christmas and the New Year with their loved ones. We encourage the government to ensure that the chaos prevalent in the oil sector this year for reasons of vested interest groups does not repeat itself in the coming year. We also urge the NNPCL to support the Dangote refinery. At the same time, as announced, the Port Harcourt refinery should maintain steady oil production to ramp up supply, meet domestic fuel consumption, and avoid product shortages.
Nigeria, being a mono-economy, no longer has the luxury of time to play games in the oil sector. We hope to see healthy competition in the industry if the Port Harcourt refinery, as declared by the government, has indeed resumed production. Ultimately, what happens in the oil sector should be a win-win for Nigerians, not the other way around. We are excited by the progress being made in the oil industry and hope that the government will continue to support and sustain these efforts so that production and capacity levels at the refineries can meet expectations in the near future.
