Dangote Refinery Slashes Diesel Price Again, Offers Further Relief to Businesses
LAGOS, Nigeria – The Dangote Petroleum Refinery has announced a further significant reduction in the price of Automotive Gas Oil (AGO), commonly known as diesel, marking the second such slash in recent weeks.
This move is expected to provide additional relief to businesses and consumers grappling with high energy costs.
The new price, announced by the refinery management, brings diesel down to approximately N940 per litre for customers buying 5 million litres and above, and around N970 per litre for those buying 1 million litres.
This is a notable drop from the previous price of about N1,200 per litre announced just a few weeks ago, and a massive reduction from the over N1,600 to N1,700 range seen in the market before the refinery began sales.
The latest price cut follows the refinery’s initial major reduction and highlights its growing impact on the Nigerian market.
The high cost of diesel has been a major contributor to inflation and the high cost of doing business in Nigeria, particularly impacting transportation, logistics, and manufacturing sectors heavily reliant on diesel generators for power.
Industry experts and business owners have welcomed the development. They note that the repeated price reduction by a domestic refinery is a game-changer for the economy.
Lower diesel costs are anticipated to translate into reduced operating expenses for companies, potentially leading to lower prices for goods and services, and easing inflationary pressures.
A statement from the Dangote Group indicated that the decision was made in alignment with their commitment to easing economic hardship in Nigeria and boosting industrial activity.
The refinery stated its capacity to meet a significant portion of the nation’s diesel demand, which is crucial for price stability.
The development also underscores the potential of local refining to disrupt the market dynamics previously dominated by imports.
As the Dangote Refinery ramps up its operations and potentially begins supplying other refined products like petrol, further positive impacts on the energy sector and the broader economy are expected.
While the full effect on retail prices across the country is yet to be seen, the refinery’s price point sets a new benchmark that could force other suppliers to reduce their prices to remain competitive.
Businesses are hopeful that this downward trend in diesel prices will be sustained, leading to a more predictable and lower-cost energy environment in Nigeria.
Tolu Adebayo
Reporter/ Social Media Manager
