In an effort to reduce financial burdens on consumers and businesses, Dangote Petroleum Refinery & Petrochemicals has lowered the price of diesel to N1,020 per litre. This is the third price reduction since the refinery commenced diesel production in January 2024, initially pricing it at N1,700 per litre.
The most recent price reduction of N55 per litre comes after Prof. Ken Ife, a development economist and public policy analyst, disclosed that the Dangote Refinery had spent more than N10 billion to guarantee fuel supply throughout Nigeria throughout the Christmas season. The refinery, which is now dealing with a N80 billion debt owed to petroleum marketers, was commended by him for assuming a job that has hitherto been performed by the government’s Petroleum Equalisation Fund (PEF).
According to Prof. Ife, the subsidy burden has now shifted from the government to the private sector, with Dangote stepping in to ensure price stability. He explained that historically, Nigeria’s fuel prices were stabilized through the equalization fund, which covered the cost differences in fuel transportation. However, with the fund facing financial difficulties, the Dangote Group voluntarily absorbed the costs, ensuring a uniform fuel price nationwide.
During the Christmas season, which is typically a time of fuel shortages and high transportation costs, the Dangote Refinery helped prevent fuel price hikes by absorbing the costs itself. “By taking on this responsibility, the refinery effectively acted as a substitute for the government’s subsidy program,” Prof. Ife stated.
Beyond local benefits, the Dangote Refinery is positioning Nigeria as a key player in the global petroleum market. Prof. Ife highlighted that major international companies like BP and Saudi Aramco are now purchasing refined petroleum products from Nigeria. This development signals a major shift in Nigeria’s oil industry, moving away from dependence on Premium Motor Spirit (PMS) towards a more diversified range of petroleum products.
Nigeria is headed towards petroleum product self-sufficiency and may soon emerge as a significant exporter of refined fuel in Africa and beyond, according to industry experts, thanks to the refinery’s continuous development and expanded refining capacity.
