Dangote Refinery Cuts Diesel Price by 5%, Offering Relief to Nigerians

Dangote Petroleum Refinery & Petrochemicals has reduced the price of its diesel by 5%, lowering the gantry price to N1,020 per litre from N1,075 per litre, with the goal of positively impacting Nigerian consumers.

Since beginning diesel production in January 2024, the refinery has decreased the price more than three times, dropping from an initial N1,700 per litre to the current rate. This price reduction has provided much-needed relief to both manufacturers and consumers.

The latest N55 per litre reduction comes after Development Economist and Public Policy Analyst, Prof. Ken Ife, revealed that Dangote Petroleum Refinery absorbed over N10 billion in losses to maintain a uniform petrol price during the holiday season. He also praised the refinery for setting a new standard in Nigeria’s energy sector, which has created significant opportunities for export revenue.

In a discussion on Arise TV, Prof. Ife explained that for many years, the equalisation fund was responsible for handling price differentials and transportation costs across the country. However, he pointed out that the fund currently owes over N80 billion to marketers.

“What has actually happened is that the president has shifted the subsidy burden away from the public purse and onto the private sector. The equalisation fund, which was meant to cover the price differential and transportation costs, plays a crucial role. If petroleum is to be sold across the country at a set price, then transportation costs must be accounted for to ensure this is possible. That’s the purpose of equalisation. However, the equalisation fund is reported to owe around N80 billion to the marketers, and this issue is still under discussion.

“During the Christmas season, which is traditionally the most challenging period, we often face shortages of petroleum, petrol hoarding, and arbitrary price hikes, all of which impact the cost of food. In response, during this last yuletide, the Dangote Group made the decision to absorb the costs. They equalised the price themselves, at a cost of over N10 billion. In doing so, they effectively absorbed the subsidy,” he stated.

Prof. Ife also highlighted that the Dangote Refinery is helping Nigeria transition away from its reliance on Premium Motor Spirit (PMS) towards a more diversified range of petroleum-based exports.

With international companies like BP and Saudi Aramco purchasing refined products from Nigeria, he believes the country is quickly becoming a significant player in the global petroleum market. Prof. Ife expressed optimism about Nigeria’s progress toward petroleum self-sufficiency, while also positioning itself as an energy export powerhouse