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Dangote Petroleum Refinery & Petrochemicals has announced a significant reduction in the cost of its diesel product, from N1,075 per litre to N1,020 per litre at the gantry price. This move marks the third price reduction since the refinery began diesel production in January 2024, with the initial price being N1,700 per litre.¹

According to a statement, the price reduction is part of the refinery’s efforts to better serve its customers and Nigerians in general. This development comes on the heels of a revelation by Development Economist and Public Policy Analyst, Prof. Ken Ife, that the Dangote Petroleum Refinery sacrificed over N10 billion to ensure the availability of petrol at a uniform price across the country during the yuletide period.

Prof. Ife praised the refinery for setting a new benchmark in Nigeria’s energy sector, unlocking vast opportunities for export revenue. He noted, “What has actually happened is that the President has shifted the subsidy burden away from the public purse and onto the private sector… However, the equalisation fund is reported to owe around N80 billion to the marketers, and this issue is still under discussion.”

Speaking on the transformative impact of the refinery, Prof. Ife explained that during the Christmas season, the Dangote Group absorbed the costs of ensuring petrol availability, effectively subsidising the cost. He stated, “During this last year, the Dangote Group made the decision to absorb the costs. They equalised the price themselves, at a cost of over N10 billion. In doing so, they effectively absorbed the subsidy.

Prof. Ife also highlighted the refinery’s role in diversifying Nigeria’s petroleum-based exports, moving away from its traditional focus on Premium Motor Spirit (PMS). He noted that with international players like BP and Saudi Aramco purchasing refined products from Nigeria, the country is becoming a key player in the global petroleum market. The analyst expressed confidence that Nigeria is on the path to self-sufficiency in petroleum products and positioning itself as an energy export powerhouse.

Prof. Ife further emphasised the significance of the Dangote Petroleum Refinery’s contribution to Nigeria’s economic growth, stating, “The refinery’s impact on the economy cannot be overstated. By providing a reliable source of petroleum products, it is helping to drive economic activity, create jobs, and stimulate growth.”

The latest price reduction by the refinery is expected to have a positive impact on the economy, as it will help to reduce the cost of doing business and make petroleum products more affordable for consumers.

In a statement, the refinery’s management expressed its commitment to continuing to provide high-quality petroleum products at competitive prices while also contributing to the growth and development of the Nigerian economy.

As the refinery continues to play a vital role in Nigeria’s energy sector, its impact is expected to be felt across the country, driving economic growth, creating jobs, and improving the standard of living for Nigerians.

With its state-of-the-art facilities, commitment to quality and customer satisfaction, and dedication to contributing to Nigeria’s economic growth, the Dangote Petroleum Refinery is poised to remain a major player in the country’s energy sector for years to come.

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