Dangote Reduces Diesel Price To N1,020 Per Litre

Dangote Reduces Diesel Price – Analyst suggest the development could lead Nigeria to self-sufficiency in petroleum products

Dangote reduces diesel price to N1,020 per litre from N1,075 per litre, the refinery announced the new price as part of efforts to serve its customers and Nigerians more effectively.

Since it began diesel production in January 2024, the refinery has adjusted the price multiple times, bringing it down from an initial N1,700 per litre to the current rate. The latest reduction of N55 per litre is expected to bring some relief to manufacturers and consumers.

A development economist and public policy analyst, Ken Ife, has highlighted the impact of the refinery on fuel pricing in Nigeria. Speaking on Arise TV, he stated that the company absorbed over N10 billion to ensure uniform petrol prices across the country during the festive period.

“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,” Ife said.

He explained that price increases and fuel shortages are common during the Christmas season, affecting transport costs and food prices. According to him, Dangote Group made the decision to absorb the costs during the last festive period.

“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 said.

Ife also noted that the refinery is shifting Nigeria’s focus from Premium Motor Spirit (PMS) towards a more diversified petroleum export market. He said major international companies, including BP and Saudi Aramco, are purchasing refined products from Nigeria, positioning the country as a key player in the global petroleum market.

He added that the development could lead Nigeria to self-sufficiency in petroleum products while also expanding its role as an energy exporter.