Dangote Refinery Cuts Diesel Price to N1,225/Litre, Set to Supply Petrol in May
In a significant development for Nigeria’s fuel market, the Dangote Petroleum Refinery has commenced the sale of diesel, leading to a notable drop in prices from about N1,700/litre to approximately N1,350/litre in various parts of the country. This move follows the refinery’s decision to pump out diesel to the domestic market, with each registered oil marketer receiving a minimum of one million litres at prices ranging from N1,225/litre to N1,300/litre, depending on the volume purchased.
The $20 billion refinery, which started the diesel sale last Wednesday, is also preparing to release Premium Motor Spirit (PMS) to the domestic market in May this year. This development is expected to have a significant impact on the Nigerian fuel market, with expectations of further price reductions in diesel and a potential shift in power and profit dynamics within the industry.
Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria, expressed optimism that Dangote’s move would lead to a crash in diesel prices, which had recently soared to about N1,700/litre. Dr. Ralph Arokoyo, Chief Executive of AF Ralph Oil and Gas Ventures, corroborated Maigandi’s statement, noting that prices are already beginning to drop in many locations across the country.
Despite its recent successes, Dangote Refinery has faced regulatory hurdles in its efforts to release refined products into the market. The refinery was officially inaugurated by former President Muhammadu Buhari in May last year, but regulatory approvals stalled its plan to release aviation fuel (Jet A1) and diesel for sale in the Nigerian market in January.
The refinery, with a nameplate capacity of 650,000 barrels per day, is expected to transform Nigeria into a net exporter of fuel to other West African countries. This development marks a significant milestone in Nigeria’s quest for energy self-sufficiency and could potentially reshape the country’s fuel market landscape.
