In response to the clamor from oil marketers, Dangote Petroleum Refinery has announced a reduction in the price of Automotive Gas Oil, commonly known as diesel, from N1,200/litre to N1,000/litre. This announcement has been warmly received by players in the downstream oil sector.
The refinery communicated this price adjustment in a statement released on Tuesday by its spokesperson, Nduka Chiejina. The statement highlighted the refinery’s commitment to reducing the price of diesel, noting that just three weeks ago, the product was sold at N1,200/litre, marking a 30% decrease from the previous market price of approximately N1,600/litre.
“This significant reduction in diesel price by Dangote Petroleum Refinery is poised to positively impact various sectors of the economy and potentially mitigate the country’s high inflation rate,” the statement read.
The call for a price reduction came from various industry groups, including the Petroleum Products Retail Outlets Owners Association of Nigeria. They emphasized the advantage of producing diesel locally at the Dangote refinery, which eliminates vessel costs, import charges, and other expenses linked to importing the commodity.
The oil marketers also highlighted that while imported diesel is landing in Nigeria at N1,250/litre due to the naira’s recent appreciation against the dollar, the Dangote refinery should consider reducing its price to reflect these savings.
