The recent drop in the pump price of Automotive Gas Oil (diesel) across the country has been attributed to the entry of Dangote Petroleum Refinery into the market. Just a few weeks ago, diesel was selling for around N1,700/litre, but now it’s available for approximately N1,350/litre in some areas.
According to reports gathered on Tuesday, the $20 billion refinery commenced pumping diesel into the domestic market last Wednesday. Each registered oil marketer received a minimum of one million litres of diesel from the plant since the commencement of sales. The selling price ranged between N1,225/litre and N1,300/litre, depending on the volume purchased.
Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria, affirmed that Dangote’s entry into the market would significantly impact diesel prices, which had previously soared to N1,700/litre.
Dr. Ralph Arokoyo, CEO of AF Ralph Oil and Gas Ventures, corroborated this, stating that Dangote refinery began selling diesel to dealers last Wednesday. He mentioned that the selling price ranged from N1,250/litre to N1,300/litre, attracting many buyers due to its competitive pricing compared to other suppliers.
Furthermore, Dangote refinery is expected to start releasing Premium Motor Spirit (petrol) into the market by May, as confirmed by industry insiders. This development is welcomed as petrol is a widely used fuel in Nigeria.
Despite facing regulatory hurdles in the past, Dangote refinery’s entry into the market marks a significant milestone in the country’s petroleum industry. The refinery’s production of refined petroleum products has commenced, with diesel being the first to hit the market shelves.
