THE $20 billion Dangote Petroleum Refinery, yesterday, slashed further the prices of both diesel and aviation fuel to N940, N980 per litre respectively.
The price change of N940 is applicable to customers buying five million litres and above from the refinery, while the price of N970 is for customers buying one million litres and above.
Speaking on the new development, the Head of Communication, Mr Anthony Chiejina, explained that the new price is in consonance with the company’s commitment to cushion the effect of economic hardship in Nigeria.
“I can confirm to you that Dangote Petroleum Refinery has entered a strategic partnership with MRS Oil and Gas stations, to ensure that consumers get to buy fuel at affordable price, in all their stations be it Lagos or Maiduguri. You can buy as low as 1 litre of diesel at N1,050 and aviation fuel at N980 at all major airports where MRS operates.”
He further stated that the partnership will be extended to other major oil marketers. “The essence of this is to ensure that retail buyers do not buy at exorbitant prices.
“The Dangote Group is committed to ensuring that Nigerians have a better welfare and as such, we are happy to announce this new prices and hope that it would go a long way to cushion the effect of economic challenges in the country.
It would be recalled that the management of Dangote Petroleum Refinery announced a further reduction of the price of diesel from 1200 to 1,000 Naira per litre barely two weeks ago.
This marks the third major reduction in diesel price in less than three weeks when the product sold at N1, 700 to N1, 200 and also a further reduction to N1,000 and now N940 for diesel and N980 for aviation fuel per litre.
President Bola Tinubu had also commended Mr Dangote for the initial price reduction, describing it as an “enterprising feat.”
Price cut to impact nation’s economy — MAN
Reacting to the latest development, The Director General of the Manufacturers Association of Nigeria (MAN), Mr Ajayi Kadiri, said that “The decision of Dangote Refinery to first crash the price from about N1,750/litre to N1,200/litre, N1,000/litre and now N940 is an eloquent demonstration of the capacity of local industries to positively impact the fortunes of the national economy.
“The trickle-down effect of this singular intervention promises to change the dynamics in the energy cost equation of the country, in the midst of inadequate and rising cost of electricity.
“The reduction will have far-reaching effects in critical sectors like industrial operations, transportation, logistics, and agriculture, contributing to easing the high inflation rate in the country; a lot of companies will be back in operation.”
Dangote Refinery will reduce pressure on Naira — CPPE
Similarly, the Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said: “This is a very good development that we have been waiting for. We are hoping it will help bring further down the cost of diesel and reduce the pressure on the nations’ Foreign Exchange because the importation of consuming products is seriously consuming about 30 percent of our FOREX.
“If we are able to take advantage of the Dangote refinery to reduce our consuming products, it will go a long way in easing the country’s foreign exchange crisis. However, the macro-economic impact that it will have across all sectors.
“So, it’s one of the major thing we are hoping will help us stabilize the macro-economic environment and reduce energy cost and that to me is a welcome development. For me, this is a Nigerian refinery but not a government owned. We are optimistic that with the report of the Port-Harcourt refinery which will be running soon, we are better placed as a country.”
FG should encourage investors
On government role towards ensuring a sustainable industry, he added that, “I will advise that government should encourage anyone investing in the critical sectors of the economy. Government should give them whatever incentives. What will need now is domestic production
“We should not spare any effort to support anything that will enable us fast-track import substitution so that we can reduce the level of imports be it in production of tangible goods and services, just as it was with AirPeace, the dollars can be relaxed and Naira been used for transaction.
“Our local indigenous operators should be encouraged to do a lot more through government support, through our fiscal and tax policies and that is what we need to be increasing at this time.”
Also in an interview with Vanguard, yesterday, Mr Nonso Ubajaka, President of Luxury Bus Owners of Nigeria, ALBON, said: “The reduction in the price diesel will bring a relief to our members, who have been struggling to survive with the high cost of diesel.
“A Luxury bus consumes about 300 litres of diesel from Lagos to Aba. If you multiply the current price we are buying diesel at N1, 440 by 300 litres, you would know how difficult it has been for our members. It is a good development for Dangote Refinery to slash the price of diesel.”
On his part, Mr Jude Nneji, Managing director of ABC Transport Plc, said: “We have been monitoring and can confirm that the price has started to drop at the depots.”
However, the Chief Executive Officer/CEO, Major Energy Marketers Association of Nigeria, MEMAN, Mr. Clement Isong, said: “Our members have since started lifting diesel and aviation fuel from the Dangote Refinery. It is a good development that will impact the domestic market.”
The President, Independent Petroleum Marketers Association of Nigeria, Alh Abubakar Maigandi Shettima-Garima, could not be reached, but another member of the association, said: “Independent marketers have started lifting diesel from the plant. With improved supply, it is hopeful that the domestic market would be positively impacted.”
