President of Dangote Industries Limited, Aliko Dangote, has said petrol remains cheaper in Nigeria than in neighbouring countries. This is despite recent increases in domestic pump prices.
According to Vanguard, Dangote made the assertion during an interview with Arise Television. He discussed rising fuel costs and supply concerns during the interview.
He argued that petrol prices should be compared with those in neighbouring countries. In those countries, consumers could pay between 30 and 50 per cent more.
“Expensive is relative in the sense that today, for a lot of them, there’s ignorance also. What they need to do is to ask what the neighbour’s price is,” Dangote said.
Dangote links price gap to smuggling
The businessman said the difference in prices continued to make smuggling profitable for traders who move fuel across Nigeria’s borders.
“I don’t know if you know that there’s still a lot of smuggling of the same petrol we are producing to our neighbouring countries,” he said.
Dangote cited Niger Republic, saying petrol prices there were about 20 to 25 per cent higher than in Nigeria.
The comments follow reports that petrol prices reached about N1,400 per litre in Lagos and N1,450 in Abuja.
Despite concerns over the Middle East conflict and its impact on energy supplies, Dangote assured Nigerians that his refinery would continue supplying the local market.
“We will make sure that Nigeria will be fully delivered. We will deliver to Nigeria. Nigerians don’t need to worry,” he said.
“There will not be any shortage from our own part. There won’t be any shortage. There will not be any queues.”
Dangote also identified inconsistent government policies and inadequate electricity supply as major challenges facing Nigerian businesses.
He said expensive alternative energy sources such as diesel continued to increase production costs for manufacturers.
