The Dangote Petroleum Refinery has cut the gantry price of diesel by N55, reducing it to N1,020 per litre. This marks the third price reduction since the refinery began diesel production in January 2024, bringing much-needed relief to manufacturers and consumers alike.
A statement by Esan Sunday, Dangote Industries’ Head of Media Relations, revealed that the price slash aligns with the company’s commitment to stabilizing the energy sector and easing financial pressure on businesses. “This latest reduction demonstrates our dedication to supporting the Nigerian economy while ensuring energy affordability,” the statement noted.
Over N10 Billion Sacrificed for Fuel Stability
The price adjustment coincides with praise from Development Economist Prof. Ken Ife, who commended the refinery for its strategic interventions in the fuel market. “The Dangote Refinery sacrificed over N10 billion to maintain petrol price uniformity nationwide during the festive season,” he stated. Prof. Ife also highlighted how the refinery has set a benchmark in Nigeria’s energy sector by unlocking significant export opportunities.
Since its launch, the refinery has slashed diesel prices from an initial N1,700 per litre to N1,020, a cumulative reduction of N680 per litre. These efforts not only support local manufacturers but also promote a competitive pricing environment in Nigeria’s energy market.
Expanding Export Capacity and Global Reach
Beyond catering to local demand, the refinery has ramped up its export operations. Recently, it exported two cargoes of jet fuel to Saudi Aramco, Saudi Arabia’s state oil company. This development underscores its growing role as a global energy player.
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The refinery’s 650,000 barrels-per-day (bpd) capacity has positioned Nigeria as a significant force in fuel exports across Africa, Europe, and the Middle East. Currently operating at 550,000 bpd, the refinery aims to reach full capacity within 30 days.
Price Competition Reshapes Market Dynamics
The Dangote Refinery is introducing a new era of price competition in Nigeria’s energy market. By frequently reviewing product prices, including a recent reduction of petrol from N950 to N890 per litre, it challenges traditional pricing norms.
The refinery’s focus on steady supply and strategic pricing ensures Nigeria is less exposed to global oil price volatility. “Our goal is to balance domestic needs while boosting Nigeria’s fuel independence,” the company stated.
A Promising Outlook for Nigeria’s Energy Future
With its strategic price reductions and export milestones, the Dangote Refinery continues to transform Nigeria’s energy sector. Its commitment to stabilizing prices, fostering competition, and driving exports signals a promising future for local industries and the broader economy.
