Dangote Petroleum Refinery & Petrochemicals has lowered the price of its diesel product from N1,075 per litre at the gantry price to N1,020 per litre in an attempt to better serve its clients and Nigerians in general.
The refinery has more than tripled the price of diesel since it started producing it in January 2024, from the starting price of N1,700 per liter to the current rate, giving both producers and consumers much-needed respite.
The most recent diesel price cut of N55 per litre comes after Prof. Ken Ife, a development economist and public policy analyst, disclosed that the Dangote Petroleum Refinery forewent over N10 billion in order to guarantee that gasoline would be available nationwide during the Yuletide season at a consistent price.
Speaking about the refinery’s revolutionary effect on Arise TV, Prof. Ife clarified that the equalization fund had been in charge of handling the price differences and transportation expenses associated with distributing petroleum throughout the nation for years, but the development analyst claimed that the fund owed marketers more than N80 billion.
“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.”
According to Prof. Ife, the facility is helping Nigeria diversify its petroleum-based exports and move away from its historical emphasis on Premium Motor Spirit (PMS).
Nigeria is quickly emerging as a big player in the global petroleum market, he continued, with large international firms like BP and Saudi Aramco buying refined goods from the country. The expert was confident that Nigeria is moving toward petroleum product self-sufficiency and establishing itself as a major exporter of energy.