In a recent interview on Arise News from 3.41, Maurice Ibe explained why the government cannot control the price at which Dangote Refinery sells its fuel. According to Ibe, Dangote is a private company, and in a deregulated market, no one can force a company to sell at a specific price.
Instead, prices are determined by how much it costs a company to produce the fuel. He added that while people may be upset that Dangote has not disclosed his price to the Nigerian National Petroleum Company Limited (NNPCL), it is important to remember that Dangote must price his fuel based on what it costs him to make it.
Ibe further criticized the NNPCL for being the only major supplier of fuel, despite having four refineries that are not working. He pointed out that Dangote Refinery, as a private entity, is free to sell at a price it finds profitable, and the government cannot tell the refinery how much to charge.
The real issue, Ibe argued, is that the fuel market was deregulated without any functional government refineries to provide competition. As a result, Dangote Refinery has become a kind of monopoly, with no other players in the market to drive prices down. He emphasized that it’s not Dangote’s fault, but the lack of competition that has led to higher fuel prices.
