Again, Dangote Crashes Diesel, Aviation Fuel Prices To N940, N980

Dangote Petroleum Refinery has again announced a further reduction in the prices of both diesel and aviation fuel to N940 and N980 per litre, respectively.

This is coming at the wake of its widely celebrated earlier price reduction to N1,000 barely two weeks ago. The price change of N940 is applicable to customers buying five million litres and above from the refinery, while the price of N970 is for customers buying one million litres and above.

LEADERSHIP recalls that the initial price reduction by Dangote attracted presidential applause from President Bola Tinubu, who described the gesture as an ‘enterprising feat’.

Speaking on the new development, the head of Communication of the Refinery, Mr. Anthony Chiejina, explained that the new price was in consonance with the company’s commitment to cushion the effect of economic hardship in Nigeria.

“I can confirm to you that Dangote Petroleum Refinery has entered a strategic partnership with MRS Oil and Gas stations, to ensure that consumers get to buy fuel at affordable price, in all their stations be it Lagos or Maiduguri. You can buy as low as one litre of diesel at N1,050 and aviation fuel at N980 at all major airports where MRS operates,” he stated.

He further stated that the partnership will be extended to other major oil marketers, saying that “the essence of this is to ensure that retail buyers do not buy at exorbitant prices.

“The Dangote Group is committed to ensuring that Nigerians have a better welfare and as such, we are happy to announce these new prices and hope that it would go a long way to cushion the effect of economic challenges in the country.”

It would be recalled that the management of Dangote Petroleum Refinery announced a further reduction of the price of diesel from 1200 to 1,000 Naira per litre barely two weeks ago.

This marks the third major reduction in diesel price in less than three weeks when the product sold at N1,700 to N1,200 and also a further reduction to N1,000 and now N940 for diesel and N980 for aviation fuel per litre.

Reacting to the latest development, the director-general of the Manufacturers Association of Nigeria (MAN), Mr. Segun Ajayi-Kadiri, said that “the decision of Dangote Refinery to first crash the price from about N1,750 per litre to N1,200 per litre, N1,000 per litre and now N940 is an eloquent demonstration of the capacity of local industries to positively impact the fortunes of the national economy.”

He added that “the trickledown effect of this singular intervention promises to change the dynamics in the energy cost equation of the country, in the midst of inadequate and rising cost of electricity.

“The reduction will have far-reaching effects in critical sectors like industrial operations, transportation, logistics, and agriculture, contributing to easing the high inflation rate in the country; a lot of companies will be back in operation.”


Dangote Refinery to begin petrol sales in Q4 – S & P

Dangote refinery will start supplying petrol in the fourth quarter of 2024, according to Standard and Poor’s’ Global Commodities, S & P.

Kelly Norways, an African energy expert at the S&P, disclosed this in a podcast titled ‘Exploring West Africa’s oil product flows in a changing refining landscape’.

She said the Dangote refinery will significantly reduce energy imports across the West African sub-region, putting the figure for petrol as much as 290,000 barrels daily from 2024 to 2026.

“We are starting to see signs of activities, but all eyes are on when we’ll start to see gasoline production commence from that project. There is significant pressure from the Nigerian government for significant volume of that supply to be sent to the domestic market.

“When we see that start scale-up is still subject to debate. Dangote has recently been espousing some punchy timelines. They have most recently been saying that they are looking to produce gasoline by May. But in reality, our analysts expect that would be something like the fourth quarter of this year in a more realistic timeline,” he said.

The Dangote refinery was officially commissioned in May 2023 but has been unable to operate at full capacity. However, it began receiving crude oil around December and finally started distributing diesel to marketers in the local market in March.

Last week, the refinery announced the reduction in diesel price to N1,000 per litre from N1,600 per litre price.

Meanwhile, the Dangote refinery and oil marketers have hinted at the commencement of petrol sales next month.

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