Emmanuel OchayiThe Dangote Petroleum Refinery has announced a reduction in the price of Automotive Gas Oil, commonly known as diesel.
The reduction, from N1,200/litre to N1,000/litre, marks a pivotal moment for the downstream oil sector and the wider Nigerian economy.
Addressing the media, Nduka Chiejina, spokesperson for Dangote Refinery, stated, “We are pleased to announce a further reduction in the price of diesel to N1,000/litre. This decision reflects our commitment to providing affordable energy solutions and contributing to the economic well-being of our nation.”
This announcement comes on the heels of fervent appeals from oil marketers for a revision in diesel prices. Just days ago, it was reported calls from industry players for a reduction to between N700 and N850/litre. The move by Dangote Refinery has been met with widespread enthusiasm among operators in the downstream sector.
Mohammed Shuaibu, Secretary of the Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja Branch, expressed his satisfaction, saying, “This is a welcome development. It will foster healthy competition in the downstream sector, ultimately benefiting consumers across the board.”
READ ALSO: Diesel Price Drop Will Bring Down Nigeria’s Inflation Rate – Dangote
Similarly, Clement Isong, Executive Secretary of the Major Energies Marketers Association of Nigeria, welcomed the news, stating, “If true, this is indeed good news. We anticipate positive outcomes from this initiative.”
The clamor for a reduction in diesel prices stems from concerns raised by industry bodies like the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria. These groups have highlighted the disparity between the cost of Dangote-produced diesel and imported variants.
Explaining their stance, industry representatives emphasized the absence of vessel costs and import charges associated with locally produced diesel. They argued that given these factors, a price adjustment was not only reasonable but also imperative for fostering a competitive market environment.
The reduction in diesel prices by Dangote Refinery is poised to have far-reaching effects on the Nigerian economy. With diesel being a critical component in transportation and power generation, the cost savings are expected to cascade through various sectors, ultimately alleviating inflationary pressures.
Looking ahead, stakeholders are optimistic about the potential ripple effects of this price adjustment. They foresee a landscape where increased competition drives further reductions in energy costs, translating into tangible benefits for businesses and consumers alike.
As Nigeria navigates its economic landscape, initiatives such as these underscore the importance of collaboration between industry players and policymakers in addressing pressing challenges and fostering sustainable growth. The move by Dangote Refinery sets a precedent for corporate responsibility and underscores the pivotal role of private enterprise in driving positive change within the Nigerian economy.
