Marketers thrilled as Dangote reduces diesel cost to N1,000 per liter

By Afolabi Hannah

Oil marketers are expressing their enthusiasm as Dangote Petroleum Refinery has heeded their calls for a reduction in diesel prices. The refinery announced on Tuesday that it has cut the price of Automotive Gas Oil, commonly known as diesel, from N1,200 per litre to N1,000 per litre. This announcement, made by the refinery’s spokesperson, Nduka Chiejina, has been warmly received by those in the downstream oil sector.

In a statement, the refinery detailed that this marked a further price drop, following an initial decrease to N1,200 per litre three weeks prior, which itself was a substantial cut from the former market rate of around N1,600 per litre. The refinery’s decision to lower diesel prices is anticipated to have a beneficial impact on various economic sectors and is expected to contribute to the reduction of the country’s high inflation rate.

Previously, on April 10, 2024, it was reported that oil marketers were advocating for a decrease in the pump price of diesel produced by Dangote Petroleum Refinery to a range of N700 to N850 per litre. The marketers also disclosed their intention to meet with the refinery’s management within the week, as noted in the report.

Mohammed Shuaibu, the Secretary of the Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja Branch, welcomed the news of the price cut, stating that it would enhance competition in the downstream sector and ultimately lead to lower prices for goods and services in the long term. Clement Isong, the Executive Secretary of the Major Energies Marketers Association of Nigeria, also expressed optimism about the reduction, noting that it would be good news if confirmed.

The call for a price reduction by IPMAN was previously reported , where the association remarked that the N1,225 per litre price was steep considering the diesel was domestically produced. The Petroleum Products Retail Outlets Owners Association of Nigeria had also requested a price cut for Dangote’s diesel.

Both groups had sought the Federal Government’s intervention and urged the refinery’s management to take into account the high transportation costs from Lagos, where the refinery is situated. They highlighted that imported diesel was being landed in Nigeria at N1,250 per litre due to the naira’s appreciation against the dollar, arguing that Dangote’s refinery, which does not incur vessel costs, import charges, and other import-related expenses, should be able to offer a more competitive price.

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