In a bid to ease financial pressure on consumers and businesses, the Dangote Petroleum Refinery & Petrochemicals has reduced the price of diesel to N1,020 per litre. This is the third price reduction since the refinery started producing diesel in January 2024. The price was initially set at N1,700 per litre before being lowered to its current rate......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
The latest price drop of N55 per litre follows revelations from Development Economist and Public Policy Analyst, Prof. Ken Ife, that the Dangote Refinery had absorbed over N10 billion in costs to ensure fuel availability across Nigeria during the Christmas period. He praised the refinery for taking on a role traditionally played by the government’s Petroleum Equalization Fund (PEF), which is currently struggling with an N80 billion debt owed to fuel marketers.
According to Prof. Ife, the subsidy burden has now shifted from the government to the private sector, with Dangote stepping in to ensure price stability. He explained that historically, Nigeria’s fuel prices were stabilized through the equalization fund, which covered the cost differences in fuel transportation. However, with the fund facing financial difficulties, the Dangote Group voluntarily absorbed the costs, ensuring a uniform fuel price nationwide.
During the Christmas season, which is typically a time of fuel shortages and high transportation costs, the Dangote Refinery helped prevent fuel price hikes by absorbing the costs itself. “By taking on this responsibility, the refinery effectively acted as a substitute for the government’s subsidy program,” Prof. Ife stated.
Beyond local benefits, the Dangote Refinery is positioning Nigeria as a key player in the global petroleum market. Prof. Ife highlighted that major international companies like BP and Saudi Aramco are now purchasing refined petroleum products from Nigeria. This development signals a major shift in Nigeria’s oil industry, moving away from dependence on Premium Motor Spirit (PMS) towards a more diversified range of petroleum products.
Industry experts believe that with the refinery’s ongoing expansion and increased refining capacity, Nigeria is on the path to self-sufficiency in petroleum products and could soon become a major exporter of refined fuel in Africa and beyond.