The Dangote Petroleum Refinery & Petrochemicals has reduced the price of diesel by 5%, bringing it down to N1,020 per litre from N1,075 per litre. This latest price adjustment is part of the company’s ongoing efforts to make fuel more affordable for businesses and consumers across Nigeria.
Since the refinery began producing diesel in January 2024, it has lowered prices multiple times. Initially, diesel was sold at N1,700 per litre, but with successive reductions, the cost has significantly dropped, offering relief to manufacturers and the general public.
The latest N55 per litre price cut comes amid reports that the refinery took on a significant financial burden to keep petrol prices stable during the Christmas season. Development Economist and Public Policy Analyst, Prof. Ken Ife, noted that the company spent over N10 billion to ensure that petrol was available at a uniform price nationwide during the festive period.
Speaking on Arise TV, Prof. Ife explained that for years, the Petroleum Equalisation Fund (PEF) was responsible for balancing price differences and covering transportation costs. However, he noted that the fund reportedly owes marketers over N80 billion, which has made it difficult to maintain price stability.
“What has actually happened is that the president has shifted the subsidy burden away from the public purse and onto the private sector. The equalisation fund, which was meant to cover the price differential and transportation costs, plays a crucial role. If petroleum is to be sold across the country at a set price, then transportation costs must be accounted for to ensure this is possible. That’s the purpose of equalisation. However, the equalisation fund is reported to owe around N80 billion to the marketers, and this issue is still under discussion.”
He also noted that during the Christmas period, fuel shortages and price hikes are common, often leading to increased costs for goods and services. However, to prevent such issues last December, the Dangote Group absorbed the price difference, spending over N10 billion to keep petrol prices steady across the country.
Beyond helping to stabilize fuel prices, Prof. Ife also noted that the Dangote Refinery is shifting Nigeria’s focus beyond Premium Motor Spirit (PMS) by increasing exports of other petroleum products. He pointed out that major global energy firms such as BP and Saudi Aramco are now purchasing refined products from Nigeria, positioning the country as a rising force in the international petroleum market.
