The cost of diesel has seen a notable drop following Dangote Petroleum Refinery’s entry into the market, selling at ₦1,225/litre and poised to introduce petrol sales in May.
The pump price of Automotive Gas Oil (diesel) has decreased from approximately ₦1,700/litre to around ₦1,350/litre in certain areas nationwide, courtesy of Dangote’s diesel sales.
The $20 billion refinery commenced diesel distribution to registered oil marketers, offering between ₦1,225/litre and ₦1,300/litre based on purchase volume.
This move is anticipated to further lower diesel prices, which surged to around ₦1,700/litre recently, with expectations of similar reductions in Premium Motor Spirit (petrol) prices when it hits the market in May.
Dangote refinery’s efforts to roll out refined products have faced regulatory hurdles, delaying its initial plans to release aviation fuel and diesel in January.
Despite these challenges, the refinery has initiated diesel sales, with promises of petrol availability in the coming month.
The refinery’s debut in the domestic market follows its earlier tenders for fuel export, signaling a shift towards Nigeria becoming a net exporter of fuel, potentially altering industry dynamics.
While diesel distributors confirm the drop in prices, independent petroleum marketers eagerly await allocations from Dangote refinery, optimistic about future transactions and market impact.
In this remarkable advancement, dealers get one million litres each at ₦1,225/litre, with price drops occurring in three states: Oyo, Lagos, and Ogun.
