Sun. Apr 21st, 2024

By Ojukwu Emmanuel Chiadikaobi

 

The Nigerian fuel market is experiencing a significant shift as the Dangote Petroleum Refinery enters the scene, promising relief to consumers grappling with high diesel prices. The pump price of Automotive Gas Oil (diesel) has plummeted from approximately N1,700/litre to around N1,350/litre in various parts of the country, thanks to Dangote’s recent sale of the commodity.

The $20 billion worth refinery, which commenced operations last Wednesday, has already made a substantial impact by supplying diesel to registered oil marketers at prices ranging between N1,225/litre and N1,300/litre, depending on purchase volume. Each marketer was guaranteed a minimum purchase of one million litres.

According to officials of the refinery and oil dealers, the release of diesel is just the beginning, with plans to introduce Premium Motor Spirit (petrol) to the domestic market in May. Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria, affirmed the refinery’s commitment to providing more products, including aviation fuel, in the near future.

Maigandi expressed optimism that the influx of products from the Dangote refinery would lead to a significant reduction in diesel prices, which had surged to about N1,700/litre recently. He noted that the price decline had already begun, particularly in Lagos, and anticipated further decreases as more products from the refinery flood the market.

Dr. Ralph Arokoyo, Chief Executive of AF Ralph Oil and Gas Ventures, corroborated Maigandi’s statements, confirming that the refinery had initiated diesel sales to dealers since last Wednesday. He highlighted the widespread impact of the refinery’s operations, stating that it had supplied diesel to various oil marketers, including members of IPMAN and MEMAN, as well as independent dealers.

The ripple effects of Dangote’s entry into the fuel market are becoming evident nationwide, with diesel prices dropping in many locations. Stations are now offering diesel at rates as low as N1,350/litre, with expectations of further reductions in the coming weeks as more products from the refinery saturate the market.

With the promise of increased supply and competition, consumers can look forward to more affordable fuel prices and improved accessibility in the near future. As Dangote Petroleum Refinery continues to ramp up its operations, it is poised to reshape the dynamics of the Nigerian fuel industry, providing much-needed relief to both consumers and businesses alike.

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