The Independent Petroleum Marketers Association of Nigeria (IPMAN) is eyeing further reductions in diesel prices following the recent price cut by the Dangote refinery, with hopes pinned on a potential drop to as low as N700 per litre.
Hammed Fashola, the National Vice President of IPMAN, expressed optimism during an interview on Wednesday, commending the Dangote refinery for lowering diesel prices from over N1,200 to N1,000. He emphasized the association’s anticipation of continued price declines.
Fashola attributed the potential reduction in diesel prices to several factors, including the strengthening of the naira against the dollar. He highlighted the absence of challenges associated with shipment, customs duties, and other overhead costs since the product is now locally produced.
“With the challenges of shipment, customs duties, and other factors removed, we expect diesel prices to drop further to around N700 per litre,” Fashola stated, underscoring the potential benefits of affordable diesel to businesses and citizens.
He reiterated IPMAN’s support for Dangote’s efforts, emphasizing the collective desire for even more affordable prices to stimulate economic activities and support businesses.
Dangote’s recent price adjustments, which saw diesel prices plummet from N1,600 to N1,000 per litre within two weeks, have been welcomed by analysts and economists.
Femi Oladele, an economist, hailed the price cuts, foreseeing significant drops in production costs and a potential revival of businesses that had been hampered by high fuel expenses. He also highlighted the positive impact on foreign exchange savings and predicted a boost in economic activities.
Jonathan Thomas, an analyst at Sankore Investment Limited, underscored the broader economic implications of fuel prices, noting their influence on the general price level of goods and services. He emphasized the significance of diesel in production processes and transportation, stressing that the price reductions could positively impact overall production costs.
As stakeholders anticipate further reductions in diesel prices, the developments signal a potential catalyst for economic growth and stability, with hopes set on continued improvements in fuel affordability and its ripple effects across various sectors.
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