Oil marketers have persisted in selling automotive gas oil, sometimes known as diesel, at prices ranging from N1,350 to N1,450 per liter in different parts of the nation, even in the face of many reductions in the commodity’s cost by the Dangote Petroleum Refinery.
They applauded Dangote for heeding their pleas for more reductions in the price of AGO from the factory, despite the fact that they ascribed the high pump price of AGO to taxes, transportation expenses, and old stock in the majority of the tanks in their filling stations.
This came after the Dangote refinery slashed the price of aviation fuel, better known as JetA, by almost N470 per liter.
Dangote crashes prices
The Dangote Petroleum Refinery, on Tuesday, announced a further reduction in the prices of diesel and aviation fuel to N940/litre and N980/litre respectively.
On April 17, Bizwatch Nigeria reported that Dangote refinery listened to the calls of oil marketers regarding a reduction in the price of diesel, as the refinery reduced the cost of the commodity from N1,200/litre to N1,000/litre.
On Tuesday, the multi-billion dollar facility announced a further reduction in the price of AGO but noted that this change was only applicable to dealers purchasing up to five million litres of diesel and above.
“The price change of N940 applies to customers buying five million litres and above from the refinery, while the price of N970 is for customers buying one million litres and above,” the firm stated in a statement issued by its spokesperson, Anthony Chiejina.
He explained that the new price aligned with the company’s commitment to cushion the effect of the economic hardship in Nigeria.
“I can confirm to you that Dangote Petroleum Refinery has entered a strategic partnership with MRS oil and gas stations to ensure that consumers get to buy fuel at affordable prices in all their stations, be it Lagos or Maiduguri.
“You can buy as low as one litre of diesel at N1,050 and aviation fuel at N980 at all major airports where MRS operates,” Chiejina stated.
He further noted that the partnership would be extended to other major oil marketers.
“The essence of this is to ensure that retail buyers do not buy at exorbitant prices. The Dangote Group is committed to ensuring that Nigerians have better welfare and as such, we are happy to announce these new prices.
“We hope that it would go a long way to cushion the effect of economic challenges in the country,” the spokesperson of the refinery stated.
The management of Dangote Petroleum Refinery announced a reduction in the price of diesel from N1200 to N1,000/litre less than two weeks ago.
Tuesday’s price slash marked the third major reduction in diesel prices in less than three weeks. The product sold for N1,700/litre about a month ago, but was reduced to N1,200/litre by Dangote refinery.
The facility also carried out a further reduction in the cost of AGO to N1,000/litre, before the latest slash to N940/litre. It puts aviation fuel from the plant at N980/litre.
President Bola Tinubu had also commended the refinery for the initial price reduction, describing it as an enterprising feat.
Reacting to the latest development, the Director-General of the Manufacturers Association of Nigeria, Ajayi Kadiri, was quoted in the statement from Dangote refinery as saying, “The decision of Dangote refinery to first crash the price from about N1,750/litre to N1,200/litre, N1,000/litre and now N940/litre is an eloquent demonstration of the capacity of local industries to positively impact the fortunes of the national economy.
“The trickle-down effect of this singular intervention promises to change the dynamics in the energy cost equation of the country, in the midst of inadequate and rising cost of electricity.
“The reduction will have far-reaching effects in critical sectors like industrial operations, transportation, logistics, and agriculture, contributing to easing the high inflation rate in the country. A lot of companies will be back in operation.”
Oil marketers also commended the management of the refinery for reducing the price of diesel, but they continued dispensing the product at high prices and blamed this on various factors.
