Responding to the pleas of oil marketers, the Dangote Petroleum Refinery has made the decision to decrease the price of Automotive Gas Oil, commonly known as diesel.
In an official statement released on Tuesday by the spokesperson, Nduka Chiejina, the refinery announced a cut in diesel price from N1,200/litre to N1,000/litre, sparking enthusiasm within the downstream oil industry.
The statement by the refinery read, “In an unprecedented move, Dangote Petroleum Refinery has announced a further reduction of the price of diesel from N1200 to N1,000/litre.”
“Three weeks ago, upon product rollout, the refinery had provided diesel at a significantly reduced price of N1,200/litre, which marked a reduction of over 30 percent from the previous market rate of approximately N1,600/litre.”
The refinery expressed optimism that this substantial reduction in diesel price would have a positive impact on the economy, potentially aiding in lowering the current high inflation rate in the nation.
An exclusive report by NewsNow on April 10, 2024, highlighted the demand from oil marketers for the pump price of Dangote-produced diesel to be set between N700 and N850/litre.
Operators indicated intentions to convene with refinery management during the week, as disclosed in the report.
Commenting on the price adjustment, Mohammed Shuaibu, Secretary of the Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja Branch, remarked, “This is indeed a welcomed development, and I am pleased to receive this news as it will foster healthy competition within the downstream sector, benefiting a large number of Nigerians.”
Clement Isong, Executive Secretary of the Major Energies Marketers Association of Nigeria, expressed, “I have yet to be informed about this development, but if true, it is certainly good news that brings excitement.”
IPMAN, which advocated for a diesel price reduction in a recent interview with NewsNow, clarified that the N1,225/litre rate for the locally produced commodity was deemed high due to its domestic production rather than importation.
Additionally, the Petroleum Products Retail Outlets Owners Association of Nigeria urged a price decrease for Dangote diesel.
The collective groups called upon the Federal Government for intervention and urged the refinery management to consider the high logistics costs involved in transporting the product from Lagos, where the refinery is situated.
Marketers emphasized that competitive importers were offloading diesel in Nigeria at N1,250/litre following the naira’s appreciation against the dollar, citing this as another reason for the Dangote refinery, which produces diesel domestically, to reduce its pricing.
As highlighted by the oil marketers, diesel from the Dangote refinery eliminates vessel costs, import fees, and other expenses linked to bringing in the commodity from abroad.