President of Dangote Group, Aliko Dangote, has said the N1,350 price of petrol in Nigeria remains cheaper than the prevailing price in neighbouring countries.

Dangote said the price disparity had continued to encourage the smuggling of petrol across Nigeria’s borders, as traders seek to profit from higher prices in nearby markets.

He made the remarks during an interview with Arise TV on Tuesday, explaining that the cost of petrol should be assessed in comparison with prices in neighbouring countries.

According to him, petrol is currently between 30 and 50 per cent more expensive in some neighbouring countries than in Nigeria.

Using Niger as an example, Dangote said petrol sold for N1,350 in Nigeria costs about 20 to 25 per cent more in the neighbouring country.

He said the difference created an immediate financial incentive for individuals involved in cross-border fuel smuggling.

Dangote questioned why anyone would ignore an opportunity to make an instant 25 per cent return by moving petrol from Nigeria to a neighbouring market where the product commands a higher price.

He said the continued movement of subsidised or cheaper petrol across borders could undermine the domestic market, particularly when the product is sold at significantly higher prices outside Nigeria.

The businessman maintained that the relative price of petrol in Nigeria remained an important factor in understanding the continued smuggling of petroleum products to neighbouring countries.