Following the commencement of diesel sales by the Dangote Petroleum Refinery, the price of Automotive Gas Oil (diesel) has witnessed a significant drop across the country, offering relief to consumers who have been grappling with high fuel prices in recent weeks.
The Dangote refinery, valued at $20 billion, initiated diesel sales to the domestic market last week, marking a pivotal moment in the nation’s energy landscape. Oil marketers, including members of industry associations such as the Independent Petroleum Marketers Association of Nigeria (IPMAN) and Major Energy Marketers Association of Nigeria (MEMAN), have begun procuring the product from the refinery.
Reports indicate that diesel is being dispensed to marketers at prices ranging between N1,225 and N1,300 per litre, depending on the volume of purchase. This represents a notable reduction from the previous pump prices, which soared to around N1,700 per litre in some locations.
Abubakar Maigandi, the National President of IPMAN, affirmed the positive impact of Dangote’s entry into the diesel market, foreseeing further price decreases as more products from the refinery reach consumers nationwide.
Furthermore, industry sources revealed that the Dangote refinery is poised to introduce Premium Motor Spirit (petrol) into the market by May this year, offering hope for additional relief to motorists and businesses reliant on petrol.
Dr Ralph Arokoyo, Chief Executive of AF Ralph Oil and Gas Ventures, corroborated reports of the refinery’s diesel sales, highlighting the immediate effect on market dynamics. He emphasized the refinery’s role in stabilizing fuel prices, which had surged to unprecedented levels in recent weeks.
The Dangote refinery’s venture into the diesel market marks a significant milestone in Nigeria’s energy sector, signaling increased competition and potentially driving down fuel prices nationwide. As consumers await the arrival of petrol from the refinery in the coming months, expectations are high for further alleviation of the economic burden imposed by high fuel costs.
Despite facing regulatory hurdles and delays in previous attempts to release refined products into the market, the Dangote refinery’s successful commencement of diesel sales underscores its commitment to transforming the nation’s energy landscape. With a nameplate capacity of 650,000 barrels per day, the refinery stands as Africa’s largest, poised to play a pivotal role in Nigeria’s energy security and economic development.
