Human rights lawyer and founding partner of Deji Adeyanju & Partner (DAP), Deji Adeyanju, has accused Africa’s richest man and the Chairman of Dangote Petroleum Refinery of monopoly.
He added that the billionaire is exploiting Nigerians by hiking the price of Premium Motor Spirit (PMS), also called protrol above N1,000 per litre despite enjoying huge government benefits.
The lawyer said PMS from the Dangote Refinery should sell below N500 per litre because the refinery is exempted from several costs and charges linked to importation.
The human rights lawyer said these during an X space with the theme ‘Fuel Costs and Their Toll on Nigerians—a chat with David Hundeyin,’ hosted by News Central and monitored by NewsNGR.
Other speakers include the Managing Director of Ingentia Energies Ltd operators of PPL 202, Olajumoke Ajayi and an oil and gas expert and Co-Founder/CEO of Dairy Kelvin Emmanuel.
The debate follows the pricing of PMS above N1,000 per litre by local refineries like the 650,0000 barrels per day Dangote Refinery despite foreign exchange supports and access to crude in naira.
Recall that Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN) had lamented that the landing cost of petrol at N1,107 from Brazil or other parts of the world is cheaper than the PMS sourced from the Dangote Refinery in Lagos.
An analysis of cost shows that Free on Board (FOB) cost is N434 per litre; freight cost is N86; Insurance cost N10, littering cost N83; Jetty depo fees N15; storage fee N12; financing cost N34; foreign exchange cost N23; Nigerian Ports Authorities (NPA) charges N10; NIMASA chares N5; Custom duties is N51 while other levies and charges N50 making up the N1,107 landing cost.
Adeyanju lamented that petrol is integral to the lives of Nigerians, adding that “Even a plate of food is affected by petrol price and things that are not produced abroad. Almost everything is affected by the price of petrol.”
The human rights lawyer said, ” The question that so many of us that did not go to any petrochemical school are asking is that if you remove FOB cost which is N430 per barrel, plus freight cost which is N86, littering cost which is N23, jetty depo fees N15, plus the storage fees, plus the foreign exchange fees, NIMASA charges, plus NPA charges, plus Custom duties, everything will amount to N686.
“So, if you minus N686 from N1,107, petrol produced at Ibeju Lekki should not be more expensive than petrol produced, shipped bought from Brazil and this is why we say Dangote is part of the major problem we have in this country while no body will be happy if the Dangote Refinery fails because that is a national asset.
“That is why we encourage the government to help others build refinery like the way Buhari’s government helped Dangote to source for forex which is a contribution of our commonwealth to build refinery.
“The Federal Republic of Nigeria should not be Aliko Dangote enterprise. Some individuals are like members of Nigeria Plc where they are the ones that get all the benefits from CBN and NNPC. Our constitution in Chapter 2 has said wealth must be evenly distributed. So, we want more refineries.”
He said the naira for crude arrangement with Dangote should be extended to other local refineries, adding “Afterall, fuel that is produced locally will not have all these components. The idea that Dangote went to court to stop importation of fuel is a monopolistic tendency.”
He said if the PMS from the Dangote Refinery is cheaper, there would have been no need for importation.
“You (Dangote) are not paying all these charges worth over N600. Your fuel should be less than N500 per liters so that you will crash the market. It is demand and supply, we don’t need to go to Harvard to know that the law of demand and supply is universal.”
Adeyanju further lamented that Dangote gets fuel in local currency and pegs his PMS at a high price.