Oil marketers are jubilant as Dangote Petroleum Refinery responds to their appeals by reducing the price of Automotive Gas Oil, commonly known as diesel, to N1,000 per litre from the previous N1,200 per litre.
The announcement, made by the refinery on Tuesday through its spokesperson, Tony Chiejina, has stirred excitement among players in the downstream oil industry.
Chiejina stated, “In an unprecedented move, Dangote Petroleum Refinery has announced a further reduction of the price of diesel from N1,200 to N1,000 per litre.”
He added, “While rolling out the products, the refinery supplied at a substantially reduced price of N1,200 per litre three weeks ago, representing over 30 per cent reduction from the previous market price of about N1,600 per litre.”
The refinery’s decision to slash diesel prices is expected to have a positive ripple effect across the economy and potentially contribute to alleviating the high inflation rate in the country.
Earlier this month, The PUNCH reported the clamor from oil marketers for a downward review in the pump price of diesel produced by the Dangote Petroleum Refinery to a range between N700 and N850 per litre.
In response to the price adjustment, Mohammed Shuaibu, the Secretary of the Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja Branch, expressed satisfaction, stating, “This is a welcome development… Such competition would create room for more price reduction and we are going to start seeing the positive impact on the cost of goods and services in the long run.”
Similarly, Clement Isong, the Executive Secretary of the Major Energies Marketers Association of Nigeria, welcomed the news, expressing excitement about the potential reduction in diesel prices.
The call for a reduction in diesel price came from various oil marketer groups, including IPMAN and the Petroleum Products Retail Outlets Owners Association of Nigeria, citing the high cost of logistics and the absence of import-related expenses for diesel produced domestically.
With Dangote’s move to lower diesel prices, it is anticipated that competition in the downstream oil sector will intensify, leading to further reductions in fuel costs and potentially benefiting consumers nationwide.
