The Dangote Petroleum Refinery and Petrochemicals has announced a reduction in the price of diesel to N1,020 per litre, down from its previous rate of N1,075 per litre. This latest price cut is part of the refinery’s ongoing efforts to provide relief to consumers and improve affordability.
Consistent Price Reductions
Since January 2024, when Dangote Refinery began diesel production, it has implemented multiple price reductions, bringing the cost down from an initial N1,700 per litre to as low as N1,000 per litre at one point.
In addition to lowering diesel prices, the refinery recently reduced the ex-depot price of petrol from N950 to N890 per litre, prompting some marketers to adjust their pump prices, with MRS selling petrol at N925 per litre.
Economic and Market Impacts
Speaking on the latest price reduction, Development Economist and Public Policy Analyst, Prof. Ken Ife, highlighted the significant financial sacrifices Dangote Refinery has made to stabilize fuel prices.
According to Ife, the refinery absorbed over N10 billion in costs to ensure uniform fuel pricing across Nigeria during the festive season. He further noted that for years, the Petroleum Equalisation Fund was responsible for managing price differences and transportation costs, but the government still owes marketers over N80 billion in unpaid equalization funds.
Driving Diversification in Nigeria’s Oil Sector
Beyond stabilizing fuel prices, Dangote Refinery is playing a crucial role in diversifying Nigeria’s petroleum industry. Ife pointed out that Nigeria has traditionally focused on Premium Motor Spirit (PMS), but with the Dangote Refinery now producing a wider range of petroleum products, the country is moving towards petroleum-based exports and reduced reliance on fuel imports.
This latest price reduction reflects the refinery’s commitment to enhancing local energy security, supporting businesses, and easing the financial burden on consumers amid fluctuating global fuel prices.
