Dangote Refinery Reduces Diesel Price By N55 To N1,020/L

ABUJA – Dangote Petroleum Refinery & Petrochemicals has reduced the cost of its diesel product to N1,020 per litre, down from N1,075 per li­tre, at the gantry price, in an effort to better serve its customers and Nigerians in general.

Since it began diesel pro­duction in January 2024, the refinery has reduced the price of diesel more than three times, from an initial N1,700 per litre to the current rate, thus providing much-needed relief to manufac­turers and consumers alike.

The latest reduction of N55 per litre for diesel follows the revela­tion by Development Economist and Public Policy Analyst, Prof. Ken Ife, that the Dangote Petro­leum Refinery sacrificed over N10 billion to ensure the availability of petrol at a uniform price across the country during the yuletide period.

He also praised the refinery for setting a new benchmark in Nigeria’s energy sector by unlock­ing vast opportunities for export revenue.

Speaking on the transforma­tive impact of the refinery on Arise TV, Prof. Ife explained that for years, the equalisation fund had been responsible for man­aging the price differentials and transportation costs involved in distributing petroleum across the country. However, it has been reported that the fund owes mar­keters over N80 billion, according to the development analyst.

“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 said.

Prof. Ife also said the facility is steering Nigeria away from its traditional focus on Premium Mo­tor Spirit (PMS) towards a diver­sified range of petroleum-based exports.

He added that with major in­ternational players such as BP and Saudi Aramco purchasing refined products from Nigeria, the country is swiftly becoming a key player in the global petro­leum market.

The analyst expressed confi­dence that Nigeria is on the path to self-sufficiency in petroleum products, while simultaneously positioning itself as an energy export powerhouse.