Dangote’s N1,225/Litre Petrol Sale Drives Diesel Price Drop; May Supply Fuel

Dealers in Oyo, Lagos, and Ogun states have witnessed a significant drop in diesel prices, now hovering around N1,350 per liter from the previous N1,700, following Dangote Petroleum Refinery’s recent sale of the commodity. The refinery, valued at $20 billion, commenced diesel supply to the domestic market last Wednesday, allocating a minimum of one million liters to each registered oil marketer.

According to reports, the refinery offered diesel to marketers at rates ranging between N1,225 and N1,300 per liter, contingent upon the purchase volume. This move marks the beginning of the refinery’s diesel sales, with promises of supplying aviation fuel shortly and Premium Motor Spirit (PMS) starting in May this year.

Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria, confirmed the Dangote refinery’s commencement of diesel sales. He emphasized that this development is expected to trigger a significant reduction in diesel prices, which had soared to approximately N1,700 per liter recently.

Echoing Maigandi’s sentiments, Dr. Ralph Arokoyo, Chief Executive of AF Ralph Oil and Gas Ventures, corroborated the initiation of diesel sales by the refinery. He noted that the current prices range between N1,250 and N1,300 per liter, a considerable relief compared to the previous market rates.

Arokoyo also expressed optimism about further price reductions in the coming weeks as more products from the refinery flood the market. Moreover, he confirmed the refinery’s plans to release petrol into the market between the present time and May, highlighting the significance of this move for Nigerian consumers, given the widespread use of PMS.