Commending Dangote Oil and Gas Limited, President Bola Tinubu welcomed the reduction in the gantry price of Automotive Gas Oil (diesel) from N1,650 to N1,000 per litre.
The Dangote Group recently revised the gantry price of AGO to N1,000 per litre for a minimum purchase of one million litres, with a discount of N30 per litre for purchases of five million litres and above.
Tinubu hailed the reduction as an “entrepreneurial achievement” and remarked, “The price adjustment of 60% will significantly impact the prices of various goods and services.”
In an announcement endorsed by his Special Adviser on Media and Publicity, Ajuri Ngelale, Tinubu emphasized that Nigerians and local businesses are crucial to the nation’s economic prosperity.
The statement titled ‘President Tinubu commends Dangote Group over new gantry price of diesel’ was released.
Tinubu also acknowledged the Federal Government’s 20% stake in Dangote Refinery, emphasizing the importance of partnerships between public and private entities in advancing the nation’s well-being.
He urged Nigerians and businesses to prioritize the nation during this time, assuring them of a conducive and secure environment for growth.
Notably, Dangote had met with President Tinubu in Lagos a week earlier, where he projected a drop in inflation due to the reduction in diesel prices.
“At our refinery, we have started selling diesel at about ₦1,200 compared to the previous ₦1,650 price, and I believe this can immediately help reduce inflation,” Dangote shared with journalists after meeting with President Bola Tinubu during Eid-el-Fitr celebrations.
While expressing optimism for Nigeria’s economy, Dangote highlighted the naira’s gains in the foreign exchange market, falling from N1,900/$ to the current range of N1,250 – N1,300.
He pointed out that this appreciation has facilitated a gradual decrease in prices of locally-produced goods like flour, as businesses are now spending less on diesel. This reduction in fuel expenses is expected to drive down inflation in the coming months.
“I believe we are making progress. Nigerians have shown patience, and I foresee positive outcomes ahead.
“The previous devaluation of the naira to about ₦1,900 was a major challenge.
“However, the current rate of ₦1,250 – ₦1,300 offers relief. Many products saw price increases due to high diesel costs.
“Local businesses will benefit significantly from the reduced diesel price.
“Though crude prices are rising, I anticipate that diesel prices will remain around the current rate of N1,200 or even lower, aiding businesses that transport locally-made goods and used to pay N1,650, now saving two-thirds of that cost at N1,200,” he elaborated.
Anticipating an immediate impact on inflation, Dangote highlighted the potential improvements in the next inflation figures, emphasizing continuous government efforts for better outcomes.
He urged industry leaders to collaborate with the government to enhance citizens’ welfare.
“You need both hands to applaud,” Dangote emphasized, stressing the collaborative efforts between entrepreneurs and the government for the common good.