Emmanuel OchayiThe Independent Petroleum Marketers Association of Nigeria anticipates further reductions in diesel prices with the emergence of the Dangote refinery.
The National Vice President of IPMAN, Hammed Fashola, expressed optimism during an interview, foreseeing a potential drop to around N700 per litre.
“It is a good development, a welcome development. That is what we expected. Even we are still expecting that diesel will still come down more,” Fashola stated, highlighting the recent decrease from over N1,200 to N1,000 per litre initiated by the Dangote refinery.
Fashola attributed this potential price reduction to the strengthening of the naira against the dollar, anticipating a continued favorable exchange rate. He emphasized the elimination of challenges such as shipment and customs duties, as the product is now locally produced.
“When you look at the diesel being produced here, there are lots of factors that have come to play; like the issue of shipment, the issue of tax, Customs, and others. All those are not there again,” Fashola explained. “So, we marketers, we are expecting diesel to come to like N700 per litre; that is our prayer and at that level, it will be a blessing to everybody.”
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He further expressed gratitude towards Dangote and stressed the importance of affordability for citizens.
Dangote refinery commenced diesel sales approximately two weeks ago, significantly reducing the cost from N1,600/litre to N1,250/litre. Last Tuesday, the refinery announced another price cut, lowering the fuel price to N1,000/litre.
Economists and analysts have hailed this move, highlighting its potential benefits for the economy. Femi Oladele, an economist, noted the expected decrease in production costs, which could stimulate economic activities and lead to the resurgence of businesses affected by high costs.
“This price cut is good news. Production cost should drop significantly and this should also affect the cost of products and services,” Oladele remarked.
Jonathan Thomas, an analyst at Sankore Investment Limited, emphasized the impact of fuel prices on the overall economy. “The price of fuel is one of the major determinants of the general price level of goods and services. Therefore, the latest development is expected to impact the total cost of production,” he explained.
Overall, the reduction in diesel prices by the Dangote refinery is viewed as a positive step towards economic stability and growth. With expectations of further price decreases, stakeholders remain hopeful for a more affordable and prosperous future.
