Despite the recent reduction in diesel price announced by Dangote Petroleum Refinery, oil marketers across Nigeria have maintained high pump prices for Automotive Gas Oil (diesel), selling the commodity between N1,350 and N1,450 per litre.
Dangote Petroleum Refinery, in a move to cushion the impact of economic hardships in Nigeria, announced a further reduction in diesel prices to N940/litre on Tuesday, following previous cuts from N1,200/litre to N1,000/litre. However, despite these reductions, fuel stations are yet to reflect the changes in their pump prices.
The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, acknowledged the efforts of Dangote refinery in reducing diesel prices but noted that the immediate impact on pump prices would be limited due to existing old stock at filling stations.
Maigandi explained that many marketers purchased diesel at the previous higher rates and are still selling off their old stock, preventing an immediate adjustment to reflect the refinery’s latest price reduction. He emphasized that over time, the prices at filling stations are expected to normalize as old stock gets exhausted.
Similarly, the Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, highlighted the operational costs incurred by marketers, including transportation and storage expenses, which contribute to the final retail price of diesel. Isong emphasized that diesel is a slow-moving product, further complicating the pricing dynamics for marketers.
Despite the disparity between Dangote’s reduced price and the prevailing pump prices, there is optimism among stakeholders that the continuous reduction in diesel prices will eventually translate to lower pump prices at filling stations nationwide.
While the timing for Dangote refinery’s entry into the Premium Motor Spirit (petrol) market remains uncertain, industry players anticipate similar efforts to address the challenges of high fuel prices and support the Nigerian economy.
As oil marketers navigate the complexities of fuel pricing and operational costs, consumers await the full impact of Dangote’s price reductions, hoping for relief from the burden of high diesel prices in the near future.
