The Independent Petroleum Marketers Association of Nigeria (IPMAN) anticipates further reduction in diesel prices to about N700 per litre with the operation of the Dangote refinery.
Hammered Fashola, the National Vice President of IPMAN, expressed gratitude towards the Dangote refinery for already slashing diesel prices from over N1,200 to N1,000 per litre. In an interview, Fashola reiterated high hopes for additional price reductions, citing the strengthening of the naira against the dollar as a contributing factor.
Fashola elaborated that local production eliminates challenges associated with shipment, customs duties, and other expenses, thus paving the way for even lower prices. He emphasized that IPMAN envisions diesel prices dropping to around N700 per litre, which would benefit everyone.
The IPMAN leader underscored the industry’s support for Dangote’s efforts and expressed optimism about further reductions in diesel prices to make it more affordable for citizens.
Dangote’s refinery initiated diesel sales two weeks ago, initially reducing the cost from N1,600/litre to N1,250/litre. Subsequently, another price adjustment was announced, setting the new price at N1,000/litre.
Economist Femi Oladele praised the price cuts, anticipating a significant drop in production costs and the possibility of businesses resuming operations due to reduced expenses.
He highlighted potential savings in foreign exchange, which could strengthen the nation’s reserves. Oladele also predicted increased economic activities and a decrease in inflation if the trend continues.
Jonathan Thomas, an analyst at Sankore Investment Limited, emphasized the pivotal role of fuel prices in influencing the general price level of goods and services. He explained how diesel is crucial for factory operations and transportation, and therefore, its price reduction is expected to impact overall production costs positively.
