Dangote Refinery Slashes Diesel Price to N1,000 per Litre, Bringing Relief to Manufacturers

Dangote Refinery slashes diesel price by over 30% to N1,000/litre, expected to boost economy and reduce inflation in Nigeria.

author-image
Shivani Chauhan
Updated On
New Update
Dangote Refinery Slashes Diesel Price to N1,000 per Litre, Bringing Relief to Manufacturers

Dangote Refinery Slashes Diesel Price to N1,000 per Litre, Bringing Relief to Manufacturers

Dangote Petroleum Refinery has announced a further reduction in the price of automotive gas oil (AGO), also known as diesel, from N1,200 per litre to N1,000 per litre. This significant price cut represents over a 30% reduction from the previous market price of about N1,600 per litre and is expected to positively impact all sectors of the economy, helping to reduce the high inflation rate in Nigeria.

The refinery had previously supplied diesel at a substantially reduced price of N1,200 per litre three weeks ago when it commenced operations in January 2024. Dangote Petroleum Refinery, with a capacity of 650,000 barrels per day, was inaugurated by former President Muhammadu Buhari in May 2023 and received six shipments of crude from oil marketers before beginning production of diesel and aviation fuel.

Oil marketers have expressed enthusiasm over the reduced diesel price, which they believe will provide relief for businesses and consumers amidst the high cost of living in Nigeria. The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi Kadir, highlighted that diesel is currently taking up to 80% of manufacturers' profits, making it difficult for them to cope with the high prices.

Why this matters: The reduction in diesel prices by Dangote Refinery is expected to have a positive impact on the economy and help reduce the high inflation rate in the country. Lower energy costs for manufacturers could translate into more stable prices for consumer goods, benefiting both consumers and businesses.

Aliko Dangote, the President of the Dangote Group, stated that the reduction in the cost price of diesel will help bring down the inflation rate in Nigeria. He believes that the country is on the right track, with the naira exchange rate improving and other economic progress being made.

The refinery has commenced the distribution of diesel to registered marketers through land and sea, marking a significant development for Nigeria's fuel supply and the energy sector. Stakeholders believe this rollout is a positive step for the country's economy, as the Dangote Petroleum Refinery's decision to stabilize diesel prices offers a glimmer of hope for industries struggling to maintain profitability amid economic uncertainties.

Key Takeaways

  • Dangote Refinery cuts diesel price by over 30% to N1,000/litre, boosting economy.
  • Reduced diesel prices expected to lower inflation and benefit businesses, consumers.
  • Refinery commenced diesel distribution to registered marketers, improving fuel supply.
  • Manufacturers' group says diesel costs up to 80% of profits, welcoming price cut.
  • Dangote believes price reduction will help stabilize naira exchange rate, economy.