Dangote Petroleum Refinery has announced another reduction in the prices of diesel from N1,075 to N1,020.80 per litre.
The development comes weeks after the refinery reduced its ex-depot price for petrol to N890 per litre.
In a statement on Tuesday, the company said the move is in an effort to better serve its customers and Nigerians in general.
“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,” the statement reads.
Speaking on the development on Arise TV, Ken Ife, a development economist and public policy analyst, said the refinery sacrificed over N10 billion to ensure the availability of petrol at a uniform price across the country during the yuletide period.
Ife also praised the refinery for setting a new benchmark in Nigeria’s energy sector by unlocking vast opportunities for export revenue.
He said that for years, the equalisation fund had been responsible for managing the price differentials and transportation costs involved in distributing petrol across the country.
“What has actually happened is that the president has shifted the subsidy burden away from the public purse and onto the private sector,” Ife said.
“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.
“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.”
Ife added that with major international players such as BP and Saudi Aramco purchasing refined products from Nigeria, the country is swiftly becoming a key player in the global petroleum market.
The analyst expressed confidence that Nigeria is on the path to self-sufficiency in petroleum products, while simultaneously positioning itself as an energy export powerhouse.
