Dangote Refinery Reduces Diesel Price to N1,020 per Litre
Dangote Petroleum Refinery & Petrochemicals has announced a further reduction in the price of its diesel product to N1,020 per litre, down from the previous N1,075 per litre. This move is aimed at providing relief to consumers and supporting manufacturers in Nigeria.
Since commencing diesel production in January 2024, the refinery has progressively lowered the price from an initial N1,700 per litre to its current rate. This series of reductions underscores the refinery’s commitment to affordability and economic support.
The latest price cut of N55 per litre comes on the heels of a revelation by Development Economist and Public Policy Analyst, Prof. Ken Ife, who disclosed that Dangote Petroleum Refinery sacrificed over N10 billion to maintain stable petrol prices during the festive season. He commended the refinery for setting new standards in Nigeria’s energy sector and creating vast opportunities for export revenue.
Speaking on Arise TV about the refinery’s impact, Prof. Ife highlighted the challenges associated with the equalisation fund, which was designed to manage price differentials and transportation costs for petroleum distribution. According to reports, the fund currently owes marketers over N80 billion.
“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. That’s the purpose of equalisation. However, the equalisation fund is reported to owe around N80 billion to the marketers, and this issue is still under discussion.
“During the Christmas season, which is traditionally the most challenging period, we often face shortages of petroleum, petrol hoarding, and arbitrary price hikes, all of which impact the cost of food. In response, during this last yuletide, the Dangote Group made the decision to absorb the costs. They equalised the price themselves, at a cost of over N10 billion. In doing so, they effectively absorbed the subsidy,” he stated.
Prof. Ife further emphasized that the refinery is steering Nigeria towards a diversified petroleum market, moving beyond its traditional reliance on Premium Motor Spirit (PMS). He noted that major international players such as BP and Saudi Aramco are now purchasing refined products from Nigeria, reinforcing the country’s position in the global petroleum industry.
With these advancements, Nigeria is on the path to self-sufficiency in petroleum products while simultaneously emerging as a key energy export hub.
Source: Dangote
