Business

CUPP Criticizes Dangote Refinery Over Fuel Pricing

Published by Tope Fakinlede on September 16th, 2024.

CUPP Criticizes Dangote Refinery Over Fuel Pricing

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The Coalition of United Political Parties (CUPP) has expressed strong disapproval of Dangote Refinery’s pricing of Premium Motor Spirit (PMS), commonly known as petrol.

Despite hopes for reduced fuel prices following the commencement of operations at Dangote Refinery, those expectations were thwarted when the Nigerian National Petroleum Company Limited (NNPCL) released new pricing details on Monday. According to the updated template, petrol is now priced at N950.22 per litre in Lagos, a rise from the previous N898. In Borno State, the price could climb to as high as N1,019.22 per litre.

CUPP has raised concerns regarding the justification for these prices, questioning the refinery’s production costs and transparency. The coalition’s National Secretary, Chief Peter Ameh, highlighted that the absence of additional costs such as landing fees, port charges, and tariffs should have led to lower prices from the local refinery.

In their statement, CUPP demanded a comprehensive breakdown of the refinery’s production expenses and urged NNPCL to seek more competitive pricing. They criticized the lack of transparency in the pricing mechanism and suggested that the high fuel costs contradict the benefits of domestic refining.

“The current fuel prices from Dangote Refinery are unjustifiable given the lack of extra charges typically associated with imported fuel,” the statement read. “With local crude oil supplied in local currency, production costs should be lower. It is essential that Dangote Refinery provides a clear cost breakdown to justify their pricing. The opaque pricing system and apparent collusion in maintaining high prices undermine the benefits of having a local refinery and continue to burden Nigerian consumers.”

CUPP also called for greater transparency and regulatory oversight from the National Assembly to ensure fair pricing and protect consumers. They emphasized the need for an independent regulatory body to monitor pricing mechanisms and prevent exploitation, so Nigeria can fully benefit from domestic refining and offer affordable energy to its citizens.