The Dangote Petroleum Refinery has announced another price slash on diesel, reducing the gantry price by ₦55 from ₦1,075 to ₦1,020 per litre. This is the third time the refinery has lowered diesel prices since it began production in January 2024.
According to a statement by Dangote Industries’ Head of Media Relations, Esan Sunday, the price reduction is aimed at easing the financial burden on manufacturers and businesses that depend on diesel for operations.
“Since we started producing diesel in January 2024, we have cut prices more than three times, from ₦1,700 per litre to the current ₦1,020 per litre. This move is to provide much-needed relief to manufacturers and consumers,” the statement read.
Why the Price Drop Matters
The price of diesel has been a major concern for Nigerian businesses, especially those in manufacturing, logistics, and transport. With high diesel costs, production expenses rise, leading to increased prices of goods and services. Dangote’s latest price cut brings hope for cost reductions across various industries.
Development Economist Prof. Ken Ife also praised the refinery’s efforts, revealing that Dangote sacrificed over ₦10 billion to keep petrol prices stable during the festive season. He described the refinery’s actions as a game-changer for Nigeria’s energy market.
“Dangote is setting new standards in Nigeria’s energy sector by not only meeting local demand but also boosting export revenue,” he noted.
A Shift in Nigeria’s Fuel Market?
The Dangote Refinery has stirred competition in Nigeria’s fuel market. In addition to slashing diesel prices, the refinery recently reduced the gantry price of petrol from ₦950 to ₦890 per litre. This trend is forcing other suppliers, including the Nigerian National Petroleum Company Limited (NNPCL) and independent marketers, to review their prices.
Meanwhile, the refinery is not just focusing on local sales. It has started exporting petroleum products to other countries, including Saudi Arabia, where it recently delivered two cargoes of jet fuel to Saudi Aramco, the world’s largest oil producer.
What You Should Know
- The 650,000 barrels per day capacity refinery is improving Nigeria’s fuel independence and reducing reliance on imports.
- The refinery is currently operating at 550,000 bpd and is expected to reach full capacity in 30 days.
- Dangote’s price reductions are increasing competition in the petroleum market.
- The refinery aims to shield Nigerians from global oil market volatility by ensuring stable local fuel supply.
Final Thoughts
With Nigeria still struggling with fuel importation and unstable prices, Dangote’s price reductions could be a game-changer. If more local refineries follow suit, Nigerians may see lower diesel and petrol prices in the coming months.
The big question now is: Will other suppliers adjust their prices, or will Nigerians continue to pay high costs for fuel?
