Dangote Petroleum Refinery & Petrochemicals has announced another reduction in diesel prices, lowering the rate to ₦1,020 per litre from its previous price of ₦1,075 per litre.
This move is part of the company’s continued efforts to ease economic burdens on consumers and businesses across Nigeria.
Since the refinery began diesel production in January 2024, it has reduced prices multiple times, starting from an initial ₦1,700 per litre to the current rate. These price cuts have provided much-needed relief to manufacturers, transporters, and consumers, ensuring a more affordable and stable supply of diesel in the country.
Dangote’s Role in Price Stabilization and Fuel Availability
The latest reduction in diesel price comes shortly after development economist and public policy analyst, Prof. Ken Ife, revealed that the Dangote Refinery absorbed over ₦10 billion in costs to ensure uniform petrol pricing across Nigeria during the 2024 festive season.
Speaking on Arise TV, Ife highlighted how the refinery has played a crucial role in stabilizing fuel availability. He explained that for years, the Petroleum Equalisation Fund (PEF) was responsible for managing price differentials and transportation costs to ensure fuel could be sold at uniform rates across the country.
However, the equalisation fund reportedly owes petroleum marketers over ₦80 billion, leading to financial strain in the sector. In response, Dangote Refinery stepped in during the Christmas season, covering the transportation cost of petroleum products and ensuring prices remained stable nationwide.
“What actually happened is that the President has shifted the subsidy burden away from public funds and onto the private sector. The equalisation fund, which was meant to cover price differences and transportation costs, plays a crucial role. But since it owes marketers around ₦80 billion, Dangote absorbed the cost, ensuring there were no fuel shortages, hoarding, or price hikes during the festive season,” Ife explained.
Positioning Nigeria as a Global Petroleum Hub
Beyond price stabilization, Ife emphasized the transformative impact of the Dangote Refinery on Nigeria’s petroleum sector. The facility is gradually shifting the country’s reliance away from Premium Motor Spirit (PMS) towards a broader range of petroleum-based exports.
He noted that major international oil companies like BP and Saudi Aramco have already started purchasing refined products from Nigeria, a development that signals Nigeria’s growing influence in the global energy market.
“With Nigeria now refining its own petroleum products, we are heading towards self-sufficiency while simultaneously positioning ourselves as an energy export powerhouse,” Ife stated.
What This Means for Nigerians
- Lower diesel prices will help reduce transportation costs, benefiting industries and consumers.
- The refinery’s continued investments signal improved energy security and reduced dependence on imports.
- Nigeria is gradually emerging as a key player in the international petroleum market, increasing foreign exchange earnings through exports.
With Dangote Refinery consistently driving down diesel costs, absorbing price fluctuations, and attracting global buyers, Nigeria’s energy sector is set for long-term stability and growth.
