Marketers excited as Dangote slashes diesel price to N1,000/litre

The Dangote Petroleum Refinery has listened to the calls of oil marketers as regards the reduction in the price of Automotive Gas Oil, popularly called diesel.

On Tuesday, the refinery announced a reduction in the price of diesel from N1,200/litre to N1,000/litre, a development that triggered excitement among operators in the downstream oil sector.

Dangote refinery announced this in a statement issued on Tuesday by its spokesperson, Nduka Chiejina.

The statement read in part, “In an unprecedented move, Dangote Petroleum Refinery has announced a further reduction of the price of diesel from N1200 to N1,000/litre.

“While rolling out the products, the refinery supplied at a substantially reduced price of N1,200/litre three weeks ago, representing over 30 per cent reduction from the previous market price of about N1,600/litre.

“This significant reduction in the price of diesel at Dangote Petroleum Refinery is expected to positively affect all the spheres of the economy and ultimately reduce the high inflation rate in the country.”

On April 10, 2024, it was reported that oil marketers called for a downward review in the pump price of diesel being produced by the Dangote Petroleum Refinery to between N700 and N850/litre.

The operators also revealed plans to meet the managers of the refinery this week, as stated in the report.

Reacting to the price reduction on Tuesday, the Secretary of the Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja Branch, Mohammed Shuaibu, said, “This is a welcome development and I am happy to hear this news because it will further increase competition in the downstream which will benefit many Nigerians.

“Such competition would create room for more price reduction and we are going to start seeing the positive impact on the cost of goods and services on the long run.”

On his part, the Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, said, “I have not heard about it yet. But I will be excited if it is true. It is good news.”

IPMAN, which made the call for a reduction in diesel price during an interview with The Punch last week, had explained that the N1,225/litre price for the commodity from the indigenous refinery was high because the product was produced in Nigeria and not imported.

The Petroleum Products Retail Outlets Owners Association of Nigeria had also called for a reduction in the price of Dangote diesel.

The groups called for the intervention of the Federal Government and urged the managers of the refinery to consider the high cost of logistics required to transport the product from Lagos where the refinery is located.

The oil marketers pointed out that the product is being landed in Nigeria by some importers at N1,250/litre following the appreciation of the naira against the dollar, adding that this should be another reason why the Dangote refinery that produces diesel in Nigeria should cut down its price.

According to the oil marketers, diesel produced at the Dangote refinery has no vessel cost, import charges, and other costs associated with the costs associated with the importation of the commodity into Nigeria.