Downstream Expert Criticizes Dangote’s Diesel Price as Exploitative Amid Product Lifting Commencement.
Amid the commencement of product lifting of Automotive Gas Oil (diesel) from the Dangote refinery by major petroleum products marketers, Dr. Joseph Obele, a respected Stakeholder and Downstream Expert, has voiced criticism over the refinery’s diesel pricing strategy.
Dr. Obele, a lecturer at the Department of Marketing, Ignatius Ajuru University of Education in Rivers State, has raised concerns about the refinery’s pegged diesel price of N1,225 per litre, labeling it as exploitative, particularly towards vulnerable Nigerians.
Drawing attention to the prevailing economic challenges, Dr. Obele noted that diesel importers previously sold the product at less than N900 per litre. However, due to currency scarcity and exchange rate fluctuations, the price surged above N1,000 per litre. Dr. Obele stressed the principle of comparative advantage, asserting that domestically produced goods should ideally be more affordable than imported ones.
He argued that if imported diesel was priced below N900 per litre before currency challenges, then locally produced diesel should be priced even more competitively, ideally below N700 per litre.
Expressing concern over the impact of high diesel prices on various sectors of the economy, including manufacturing, hospitality, construction, and transportation, Dr. Obele underscored the urgency of addressing the issue. He emphasized the vital role of diesel in these sectors and lamented that exorbitant diesel costs are forcing many businesses to shut down, exacerbating the nation’s already high inflation rate.
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Dr. Obele urged the government to implement interventions to mitigate the hardships faced by citizens, proposing that competition from other privately owned refineries could help drive down prices and prevent capitalist exploitation in the petroleum industry.
His critique highlights the need for a balanced approach to pricing in the petroleum sector, emphasizing affordability for consumers while promoting economic growth and stability.
