Onuesoke says Dangote’s request may trigger petrol price to N5,000/litre
…Kicks against ban of importation of refined oil products
CITIZENS COMPASS—Former People’s Democratic Party (PDP) Governorship candidate in Delta State, Chief Sunny Onuesoke, yesterday, said the request made by the President of the Dangote Group, Alhaji Aliko Dangote, to ban importation of refined oil petroleum products in Nigeria may trigger the price of petrol to N5,000 per litre.
The Chairman/ CEO of DAS Energy Services Limited, therefore kicked against such a request saying it would spell doom for the nation.
He called on the Federal Government not to approve such a request in the interest of innocent Nigerians.
Speaking at the just concluded Global Commodity Insights Conference on West African Refined Fuel Markets hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in partnership with S&P Global Insights, Dangote requested in clear terms that petrol, diesel and other refined petroleum products be added to the items banned by the policy.
According to him, the importation of fuel into Nigeria is killing local refining and discouraging further investments in the sector and even the economy. To remain viable, he urged governments across Africa to take deliberate steps as the United States, Canada, and the European Union have done to protect domestic producers from what he called unfair competition.
In a chat with our Correspondent, Onuesoke disclosed that the call by Dangote is not only bad, but a dangerous one that if not checked, might plunge the petroleum sector into a monopoly where Nigerians will be buying a liter of Premium Motor Spirit (PMS) for N5,000 as seen in other restricted products like cement.
He explained that Nigeria needs a liberal market that will give everyone the right of way to import and sell refined petroleum products, stressing that with the epileptic nature of refineries in country, monopoly will set in and if that should happen, in less than no time petroleum products prices will triple and will be unaffordable.
According to him, the consequences of such a hike lead to inflation in transport fares, food prices and other aspects of the living standard of Nigerians.
Instead of banning importation of refined oil products, he suggested that Dangote should reduce the prices of his product as a way of scaring away importers.
“For instance, let Dangote make his products N200 per litre and you see others quitting the market. He did not need to use Federal might to sidelined competitors, the former Delta State gubernatorial aspirant advised.
He further advised that the best thing to do is for the Federal Government to encourage the establishment of modular refineries, repairs Nigeria moribund refineries, issues licenses for the development of more refineries whose product will compete side by side with imported oil products to drive down prices of refined petroleum products thereby discouraging importation.
“I’ve not seen any positive impacts of both local refined and imported petroleum products. Prices are still very high. Let Dangote make his products #200, and you will see others quitting the market. One did not need to use federal might to stop them. He should bring his prize down and the marketers will stop going out to buy from outside. Who would like to go far to buy goods when it’s close by and very cheap.
The Federal Government should encourage the establishment of modular refineries, repairs Nigeria moribund refineries, issues licenses, loans for the development of more refineries whose refined oil products will compete side by side with imported oil products so as to drive down prices of refined petroleum products so as to discourage importation,” Onuesoke suggested
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