Friday, April 19, 2024
spot_img
HomeLatestDiesel Price Drops as Dangote Sells at N1,225/litre

Diesel Price Drops as Dangote Sells at N1,225/litre

Toba Owojaiye reporting 

Abuja, Nigeria 

 

The pump price of diesel in Nigeria has seen a significant drop, from about N1,700/litre to around N1,350/litre in select locations across the country.

This reduction follows the entry of Dangote Petroleum Refinery into the market, selling the commodity at a competitive rate of N1,225/litre.

According to reports gathered by Truth Live News on Tuesday, the $20 billion refinery commenced the distribution of diesel to registered oil marketers since last Wednesday, with each dealer receiving a minimum of one million litres at the agreed price range of N1,225/litre to N1,300/litre, depending on the volume purchased.

This development comes ahead of the refinery’s plan to start supplying Premium Motor Spirit (petrol) to the domestic market in May this year, as confirmed by industry sources.

Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed optimism about the impact of Dangote’s entry into the market on diesel prices, citing a significant reduction already witnessed in Lagos and expectations for further declines nationwide.

Dr. Ralph Arokoyo, Chief Executive of AF Ralph Oil and Gas Ventures, corroborated Maigandi’s statement, confirming that the refinery had commenced diesel sales to various dealers, including members of IPMAN and other independent marketers.

He noted that the competitive pricing offered by Dangote Refinery has attracted significant interest from buyers, leading to a drop in diesel prices across the federation.

Responding to inquiries about the availability of petrol, Arokoyo indicated that Dangote Refinery had informed dealers of its plans to release petrol into the market between April and May, providing further relief for consumers.

An anonymous senior official at Dangote Refinery affirmed the sale of diesel to marketers and hinted at the imminent release of petrol, emphasizing the positive impact on prices due to increased supply.

Dangote Refinery’s entry into the diesel market marks a significant milestone in Nigeria’s energy sector, with the refinery poised to address the country’s reliance on costly fuel imports. Despite facing regulatory hurdles in the past, the refinery’s operationalization signifies a shift towards self-sufficiency in fuel production, potentially positioning Nigeria as a net exporter of fuel to neighboring West African countries.

While the refinery has already commenced exports of refined products, including diesel, to international markets, its focus on domestic supply is expected to further stabilize fuel prices and enhance energy security in Nigeria.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

×