Dangote Refinery announced a reduction in the price of diesel to N940 per litre and aviation fuel to N980 per litre on Tuesday.
This price adjustment follows a previous reduction from N1,200 to N1,000 per litre the week before.
President Bola Tinubu commended the company’s efforts in a statement through his Special Adviser on Media and Publicity, affirming the importance of Nigerians and domestic businesses for the nation’s economic prosperity.
In a statement to PREMIUM TIMES by its Group Head, Corporate Communications, Anthony Chiejina, the company expressed its commitment to ensuring better welfare for Nigerians.
The new price of N940 applies to customers purchasing five million litres and above, while the price of N970 is for customers buying one million litres and above
Dangote Petroleum Refinery has entered a strategic partnership with MRS Oil and Gas stations to offer affordable fuel prices at all their stations, including major airports.
Customers can now purchase diesel for as low as N1,050 per litre and aviation fuel at N980
Ajayi Kadiri, the Director General of the Manufacturers Association of Nigeria (MAN), expressed his approval of the recent developments, highlighting the company’s decision to significantly reduce fuel prices as a testament to the positive impact local industries can have on the national economy.
This reduction is expected to bring widespread benefits across various sectors, ultimately helping to alleviate the high inflation rate and stimulate economic activities.
Meanwhile, Market participants anticipate a significant impact on local values and import markets due to the price cut.
Diesel dealers, known for their lucrative fuel imports, now face uncertainty as they watch their empires crumble within a week.
Traders are uncertain about the volume that the massive refinery is expected to produce and whether its supply will be enough to meet the daily market demand of over 7 million liters.
In a recent report by Argus, a market participant described the typically active high Sulphur gasoil offshore Lome ship-to-ship (STS) market as “almost dead.”
The report noted a lack of bid or offer levels for 10,000-20,000t STS transfers, with the most competitive offer standing at a premium of $25/t against Ice May gasoil futures, for loading between the last week of April and the first week of May.
Dangote Petroleum Refinery began production of diesel and aviation fuel in January, receiving crude oil deliveries and making significant strides towards the production of refined petroleum products.
The initial cargo received at the facility was sourced from the Agbami crude grade by Shell International Trading and Shipping Company Limited (STASCO), a major player in the Nigerian and global oil trading market.
Additionally, the refinery received an additional one million barrels of bonny light crude from the Nigeria National Petroleum Company (NNPC Ltd) to further advance its production of refined petroleum products.
This recent delivery marks the second consignment out of the anticipated six million barrels of crude oil to be processed by the world’s largest single-train refinery.
