Dangote Petroleum Refinery & Petrochemicals has reduced the cost of its diesel product to N1,020 per litre, down from N1,075 per litre at the gantry price. This reduction is part of the refinery’s ongoing efforts to better serve its customers and the Nigerian public.
Since beginning diesel production in January 2024, Dangote Refinery has already reduced the price more than three times, from an initial N1,700 per litre to the current price. This price cut provides much-needed relief for manufacturers and consumers alike, especially as the country faces growing energy demands.
The latest N55 per litre reduction follows a significant gesture by the refinery during the recent yuletide period. Development Economist and Public Policy Analyst, Prof. Ken Ife, revealed that the Dangote Petroleum Refinery sacrificed over N10 billion to ensure the availability of petrol at a uniform price across Nigeria during the busy holiday season. Prof. Ife also commended the refinery for setting a new benchmark in Nigeria’s energy sector, emphasizing the refinery’s role in unlocking substantial export revenue opportunities for the country.
During an interview on Arise TV, Prof. Ife explained that for many years, the equalisation fund managed the price differences and transportation costs associated with distributing petroleum across the country. However, the fund currently owes marketers over N80 billion, complicating the distribution and pricing structure.
“What has actually happened is that the president has shifted the subsidy burden away from the public purse and onto the private sector. The equalisation fund, which was meant to cover the price differential and transportation costs, plays a crucial role. 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. However, the equalisation fund is reported to owe around N80 billion to the marketers, and this issue is still under discussion,” said Prof. Ife.
He continued by highlighting that during the Christmas season, which is traditionally challenging due to shortages and price hikes, Dangote Refinery decided to absorb the costs and ensure price stability. This act of absorbing the subsidy amounted to over N10 billion, allowing the refinery to equalize prices without relying on government intervention.
Prof. Ife also noted that the Dangote Petroleum Refinery is steering Nigeria away from its historical focus on Premium Motor Spirit (PMS), or petrol, toward a more diversified range of petroleum-based exports. With major international companies like BP and Saudi Aramco purchasing refined products from Nigeria, the country is on track to become a key player in the global petroleum market.
The refinery's impact is further reflected in Nigeria's increasing self-sufficiency in petroleum products, which has enhanced the country's potential as an energy export powerhouse. According to Prof. Ife, this shift will position Nigeria as a global energy leader in the years to come.
Dangote Petroleum Refinery’s commitment to price reductions, especially in a challenging economic climate, reflects the company's dedication to contributing positively to Nigeria's energy landscape while fostering global competitiveness.
