Dangote Petroleum Refinery has announced another reduction in diesel prices, lowering the cost by N55 to N1,020 per litre, down from N1,075 per litre. This latest price cut is aimed at easing financial pressure on consumers and businesses across Nigeria.
Since beginning diesel production in January 2024, the refinery has made multiple price reductions, bringing the cost down from its initial N1,700 per litre. This continued price drop has been welcomed by manufacturers and consumers, offering much-needed economic relief.
Development Economist and Public Policy Analyst, Prof. Ken Ife, highlighted the importance of this reduction, noting that Dangote Petroleum Refinery had previously sacrificed over N10 billion to maintain uniform petrol prices across Nigeria during the holiday season.
He said the refinery has set new standards in the country’s energy sector while creating opportunities for increased export revenue.
Speaking on Arise TV, Prof. Ife explained that Nigeria’s equalisation fund had long played a role in managing price differences and transportation costs for fuel distribution.
“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.”
“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.”
Beyond reducing prices, Prof. Ife emphasized that the Dangote Refinery is reshaping Nigeria’s energy sector. He noted that the country is gradually reducing its dependence on Premium Motor Spirit (PMS) and moving towards a more diversified petroleum export strategy. With global energy giants like BP and Saudi Aramco purchasing refined products from Nigeria, the nation is solidifying its position as a key player in the international petroleum market.
According to him, Nigeria is on track to achieving self-sufficiency in petroleum products while also strengthening its role as a global energy exporter.
