Dangote Refinery slashes diesel price again amid economic hardship

The Dangote Petroleum Refinery and Petrochemicals has announced a further reduction in the price of diesel, from ₦1,075 per litre to ₦1,020 per litre.

The move is seen as part of efforts to ease economic pressures on businesses and consumers.

In a statement, the $20 billion refinery noted that this latest price cut reflects its commitment to ensuring affordability in the energy sector.

“Since it began diesel production in January 2024, the refinery has reduced the price of diesel more than three times, from an initial ₦1,700 per litre to the current rate, thus providing much-needed relief to manufacturers and consumers alike,” the company stated.

This follows a similar reduction in the ex-depot price of petrol, which was lowered from ₦950 per litre to ₦890 per litre “based on market realities.”

Nigeria, Africa’s largest economy, has long grappled with energy challenges, relying heavily on imported refined petroleum products due to the non-functionality of its state-owned refineries.

Until 2024, the Nigerian National Petroleum Company Limited (NNPCL) was the country’s primary importer of petroleum products.

Fuel shortages and soaring prices have been a persistent issue, particularly after President Bola Tinubu’s administration removed fuel subsidies in May 2023.

Petrol prices skyrocketed from around ₦200 per litre to over ₦1,000 per litre, exacerbating the financial strain on businesses and households, many of which depend on petrol-powered generators due to unreliable electricity supply.

The Dangote Refinery, which commenced operations in December 2023, currently processes 350,000 barrels per day and aims to reach its full 650,000-barrel capacity by year-end.

It has already begun supplying diesel, aviation fuel, and petrol to marketers across the country.

Meanwhile, the NNPCL has announced that the Port Harcourt and Warri refineries have resumed operations, with loading activities for petrol now underway.