Dangote Refinery Slashes Diesel Price to ₦1,000 Per Litre Nationwide

Dangote slashes diesel price by 60% to ₦1,000/litre, providing relief to Nigerians amid inflation. This move highlights the potential impact of local refining capacity on fuel supply and pricing.

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Dangote Refinery Slashes Diesel Price to ₦1,000 Per Litre Nationwide

Dangote Refinery Slashes Diesel Price to ₦1,000 Per Litre Nationwide

Aliko Dangote, the executive officer of Dangote Group and Africa's richest man, has announced a significant reduction in the price of diesel at his Dangote Petrochemical Refinery. The price has been lowered to ₦1,000 per litre nationwide, representing a 60% drop from the previous market price of about ₦1,600 per litre.

Dangote's decision was driven by a desire to combat profiteering in the Nigerian diesel market, where prices had skyrocketed, significantly impacting the cost of living and doing business in the country. "Profiteers have taken advantage of the astronomical rise in diesel prices to fleece Nigerians," Dangote said, emphasizing that this price reduction is a patriotic move to benefit the Nigerian people, as diesel affects the lives of everybody.

Why this matters: The substantial reduction in diesel prices by the Dangote Refinery is expected to provide immediate relief to Nigeria's inflation woes and bring down the cost of essential goods and services. This move also highlights the potential impact of local refining capacity on the country's fuel supply and pricing.

Dangote assured that the new price of ₦1,000 per litre will be effective nationwide within a few days, addressing the disparity in diesel prices across different regions, where prices had reached as high as ₦1,700 to ₦1,800 per litre. The Dangote Refinery, which has just started producing petroleum products, is expected to have an even more positive impact on gasoline prices when its products start flowing through the pumps.

Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), welcomed the price reduction and expressed high expectations that the price of diesel will continue to decrease further due to the rebound of the naira against the dollar. Fashola stated that the price reduction is a result of the elimination of factors like shipment, customs duties, and other issues, as the product is now being produced locally.

In addition to the diesel price cut, Dangote revealed plans to invest in cement production in Gombe State, North-East Nigeria, to tackle the high cost of transporting cement to the region and support local development. He also promised to deliver cement to Nigerians at more friendly prices.

The recent appreciation of the naira, from around ₦1,900 to the dollar to the current level of ₦1,250-₦1,300, has already had a positive impact on the prices of locally produced goods like flour. Dangote expressed optimism about the economy and urged captains of industry to partner with the government to improve the lives of Nigerian citizens.

Fashola expressed hope that the price of diesel could potentially reach ₦700 per litre, which would be a blessing for everyone. However, oil marketers are urging the Dangote Refinery to further lower its diesel price, arguing that the current price of ₦1,225-₦1,300 per litre is still too high considering the refinery's location within Nigeria and the recent naira appreciation. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has <a href="https://www.naijanews.com/2024/

Key Takeaways

  • Dangote Refinery cuts diesel price by 60% to ₦1,000/litre nationwide.
  • Price reduction aims to combat profiteering and benefit Nigerian consumers.
  • Lowered diesel prices expected to reduce inflation and cost of living.
  • Dangote plans to invest in cement production to tackle high transport costs.
  • IPMAN urges further diesel price cuts due to naira appreciation.