Dangote Petroleum Refinery & Petrochemicals has lowered the price of its diesel product to N1,020 per litre, down from N1,075 per litre at the gantry price, as part of its efforts to better serve customers and Nigerians in general.
Since it began diesel production in January 2024, the refinery has reduced the price of diesel more than three times, from an initial N1,700 per litre to the current rate, offering significant relief to both manufacturers and consumers.
The latest reduction of N55 per litre follows comments by Development Economist and Public Policy Analyst, Ken Ife, who revealed that the Dangote Petroleum Refinery sacrificed over N10 billion to maintain a uniform petrol price across the country during the festive season.
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He also commended the refinery for setting a new standard in Nigeria’s energy sector and creating new opportunities for export revenue.
Discussing the refinery’s transformative impact on Arise TV, Mr. Ife noted that for many years, the equalisation fund had been responsible for managing price differences and transportation costs for distributing petroleum nationwide.
However, he pointed out that the fund now owes marketers over N80 billion, according to the development analyst.
“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.
Mr. Ife also stated that the facility is shifting Nigeria’s focus from its traditional reliance on Premium Motor Spirit (PMS) to a more diversified range of petroleum-based exports.
He highlighted that with major global companies like BP and Saudi Aramco buying refined products from Nigeria, the country is rapidly establishing itself as a significant player in the global petroleum market.
The analyst expressed confidence that Nigeria is on track to achieve self-sufficiency in petroleum products while also positioning itself as a leading energy exporter.
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