Dangote Refinery Cuts Diesel Price Again
By Patience Ikpeme
Dangote Petroleum Refinery & Petrochemicals has further reduced the price of diesel to N1,020 per litre at the gantry, down from N1,075. This latest reduction, a N55 decrease per litre, reflects the refinery’s commitment to serving its customers and the Nigerian public. Since commencing diesel production in January 2024, the refinery has progressively lowered its prices from an initial N1,700 per litre, providing much-needed relief to both manufacturers and consumers.
This price reduction follows revelations by Development Economist and Public Policy Analyst, Prof. Ken Ife, that the Dangote Petroleum Refinery absorbed over N10 billion in costs to ensure a consistent petrol price across Nigeria during the recent yuletide season. Ife, speaking on Arise TV, praised the refinery for this sacrifice and for setting a new benchmark in Nigeria’s energy sector by unlocking significant export revenue potential.
Ife explained the crucial role of the equalization fund in managing price differentials and transportation costs for petroleum products across the country. He noted reports that the fund owes marketers over N80 billion. “If petroleum is to be sold across the country at a set price, then transportation costs must be accounted for to ensure this is possible. That’s the purpose of equalization. However, the equalization fund is reported to owe around N80 billion to the marketers, and this issue is still under discussion,” he stated.
During the Christmas season, traditionally a challenging period marked by fuel shortages, hoarding, and price hikes, Dangote Group intervened, absorbing the costs of price equalization themselves, at a cost of over N10 billion, Ife revealed. “In doing so, they effectively absorbed the subsidy,” he said.
Ife also highlighted the refinery’s shift away from a traditional focus on Premium Motor Spirit (PMS) towards a diversified range of petroleum-based exports. He noted that major international players, including BP and Saudi Aramco, are purchasing refined products from Nigeria, positioning the country as a key player in the global petroleum market. He expressed confidence that Nigeria is on the path to self-sufficiency in petroleum products and is poised to become an energy export powerhouse.
Dangote Refinery’s continued price reductions and its role in stabilizing fuel prices during critical periods demonstrate its commitment to the Nigerian market. The refinery’s production capacity and focus on diversified exports position Nigeria for greater energy independence and economic growth.
