Dangote Truck
Olamilekan Abayomi
Dangote Refinery has reduced the ex-gantry price of petrol to ₦1,075 per litre, marking a ₦100 decrease from the previous price of ₦1,175 per litre. This is the first price cut after three successive hikes, attributed to the recent decline in global crude oil prices. The refinery also lowered the price of diesel to ₦1,430 per litre, a ₦190 drop from ₦1,620 per litre.
The reduction in petrol prices is expected to provide some relief to fuel marketers and bulk buyers, although the impact on retail pump prices remains to be seen. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fees are excluded from the quoted prices.
Dangote Refinery’s decision to reduce prices is likely to influence the market, with other marketers expected to follow suit. The refinery’s CEO, David Bird, had earlier stated that the refinery is not insulated from global oil price shocks, given that it sources its crude on international benchmarks.
The price cut is a welcome development for Nigerian consumers, who have been grappling with high fuel prices in recent weeks. The refinery’s move is expected to ease the economic burden on households and businesses.
Dangote Refinery has been increasing its domestic supply of petrol, with a 25.3% growth in production marking a critical milestone for the facility. The refinery is scaling up to meet the energy needs of over 200 million Nigerians, raising hopes for long-term price stability and national energy security.
The refinery’s price reduction is also expected to impact the country’s energy landscape, with analysts crediting the drop in petrol imports to lower prices offshore Lome and a stronger naira.
The Crude Oil Refineries Association of Nigeria (CORAN) has commended Dangote Refinery for its efforts to ease the economic burden of high fuel costs on Nigerians. CORAN has appealed to the government to supply more crude to local refineries to make fuel more affordable.
The development underscores the importance of local refining capacity in stabilizing fuel prices and ensuring energy security in Nigeria.
