1. It isn’t the Russian-Ukrainian war;
2. It isn’t non-availability of the products in the depots nationwide;
3. IT IS BECAUSE Dangote Refinery is near completion;
4. Dangote Refinery’s products cannot be sold below production cost in the local (Nigerian) market. Alhaji Aliko Dangote must sell his products well above their unit production costs to accommodate profit margins for himself as well as the necessary participants in the supply chain.
5. In view of these compelling commercial imperatives, the Capitalists must “manufacture” real scenarios that will push the product prices to levels that are consistent with their production costs and the profit margins they have set for themselves by manipulating availability of products in the market to drive up the prices of products, and then claim that the prices are “determined by the interplay of the market forces of Demand and Supply”.
6. Pure Capitalism is a lie. Pure Socialism is impracticable.
7. The world will be a better place if we all can sit down and devise the best mix of Capitalism and Socialism that will guarantee the attainment of the greatest quantum of the merits of Capitalism and the largest quantum of Socialism. Both have their merits and demerits. None is preferable to the other.
8. In conclusion, Nigeria is experiencing artificial scarcity of PMS because Capitalist Aliko Dangote is manipulating the market force of SUPPLY to push petroleum products prices to levels that are consistent with his personal wealth-maximisation objectives.
– Adéwọlé Ọmọ́sébí Ẹ́gbọdọ̀fọ̀
*Chief Analyst, Pan-African Academy for Strategic Studies (PAASS)*
Thursday 19 January, 2023