Dangote Petroleum Refinery has announced a further reduction in the cost of diesel from N1,075 to N1,020.80 per litre.
Weeks after the refinery lowered its ex-depot price for petrol to N890 per litre, this occurrence occurred.
This company stated in a statement on Tuesday that the action was taken to better serve Nigerians in general and its customers in particular.
According to the statement, “the refinery has more than tripled the price of diesel since it started producing it in January 2024, from an initial rate of N1,700 per litre to the current rate, thus providing much-needed relief to manufacturers and consumers alike.”
Billions of Naira Sacrifice
According to Ken Ife, a development economist and public policy analyst who discussed the development on Arise TV, the refinery gave up more than N10 billion to guarantee that fuel would be available nationwide during the Yuletide season at a consistent price.
Ife also commended the refinery for opening up enormous export revenue opportunities and establishing a new standard in Nigeria’s energy industry.
“What has actually happened is that the president has shifted the subsidy burden away from the public purse and onto the private sector,” Ife stated. “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.” He claimed that the equalisation fund had been in charge of managing the price differential.
“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.
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“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 decided to absorb the costs.
“They equalised the price themselves, at a cost of over N10 billion. In doing so, they effectively absorbed the subsidy.”
Ife went on to say that Nigeria is quickly emerging as a major participant in the global petroleum market as a result of big multinational companies like BP and Saudi Aramco buying refined goods from the nation.
The expert was certain that Nigeria is moving towards petroleum product self-sufficiency and establishing itself as a major exporter of energy.
