Dangote Petroleum Refinery and Petrochemicals has announced that it has lowered the price of diesel to N1,020 per litre. This is a decrease from the previous price of N1,075 per litre. The company made this announcement in a statement on Tuesday, explaining that the price reduction is intended to better serve its customers and benefit Nigerians as a whole.
To give some context, the refinery started producing diesel in January 2024 and has already reduced its price multiple times. Initially, the price was set at N1,700 per litre, but it has now dropped to N1,000, and most recently to N1,020.
In addition to diesel, the refinery also cut the price of petrol. The price at its storage facility, known as the ex-depot price, went down from N950 to N890 per litre. This price drop has prompted fuel marketers to lower their prices as well, with one company, MRS, now selling petrol for N925 per litre.
A development economist and public policy expert, Professor Ken Ife, commented on the recent diesel price cut. He noted that the Dangote refinery has made significant sacrifices, estimating that it has lost over N10 billion to keep petrol prices stable across the country during the busy holiday season.
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Professor Ife also discussed the role of the equalisation fund, which has historically helped manage the price differences and transportation costs associated with distributing fuel throughout Nigeria. He pointed out that the government currently owes fuel marketers more than N80 billion from this fund.
Furthermore, he highlighted that the Dangote refinery is shifting Nigeria’s focus away from just producing Premium Motor Spirit (petrol) and is diversifying into a wider range of petroleum products for export. With major international companies, like Saudi Aramco, purchasing refined products from Nigeria, the country is quickly becoming an important player in the global oil market.
