Dangote Refinery Crashes Diesel Price to N1,020 Per Litre

A statement from the private refiner explained that this action was taken to better serve customers and Nigerians in general amid rising economic hardship in Nigeria.

This reduction in the price of the product follows the revelation by Development Economist and Public Policy Analyst, Prof Ken Ife, that the Dangote Petroleum Refinery sacrificed over N10 billion to ensure the availability of petrol at a uniform price across the country during the yuletide period.

He also praised the refinery for setting a new benchmark in Nigeria’s energy sector by unlocking vast opportunities for export revenue.

“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,” the scholar said on Arise TV recently.

“During the Christmas season, which is traditionally the most challenging period, we often face shortages of petroleum, petrol hoarding, and arbitrary price hikes, all of which impact the cost of food.

“In response, during this last yuletide, the Dangote Group made the decision to absorb the costs. They equalised the price themselves, at a cost of over N10 billion. In doing so, they effectively absorbed the subsidy,” he added.

Since it began diesel production in January 2024, the refinery has reduced the price of diesel more than three times, from an initial N1,700 per litre to the current rate, thus providing much-needed relief to manufacturers and consumers alike.