By Deborah Nnamdi
Dangote Petroleum Refinery & Petrochemicals has reduced the gantry price of its diesel by 5 percent to N1,020 per liter from N1,075 to impact the lives of customers and Nigerians.
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 liter to the current rate, thus providing much-needed relief to manufacturers and consumers alike.
The latest reduction of N55 per liter for diesel follows the revelation by Development Economist and Public Policy Analyst Prof. Ken Ife that the Dangote Petroleum Refinery sacrificed over N10 billion to ensure the availability of petrol at a uniform price across the country during the yuletide period. He also praised the refinery for setting a new benchmark in Nigeria’s energy sector by unlocking vast opportunities for export revenue.
Speaking on the transformative impact of the refinery, Prof. Ife explained that for years, the equalization fund had been responsible for managing the price differentials and transportation costs involved in distributing petroleum across the country. However, it has been reported that the fund owes marketers over N80 billion, according to the development analyst.
“What has happened is that the president has shifted the subsidy burden away from the public purse and onto the private sector. The equalization 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 equalization.
However, the equalization fund is reported to owe around N80 billion to 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 decided to absorb the costs. They equalized the price themselves, at a cost of over N10 billion. In doing so, they effectively absorbed the subsidy,” he said.
Prof Ife also said the facility is steering Nigeria away from its traditional focus on Premium Motor Spirit (PMS) towards a diversified range of petroleum-based exports.
He 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.
