Price of diesel may crash as Dangote Refinery begins sale to marketers

Nigerians may pay a lower cost for energy as  Dangote Petroleum Refinery begins the sale of Automotive Gas Oil also known as diesel to oil marketers across the country. 

This development was confirmed by both dealers and officials of the plant, who disclosed that diesel sales began last week.

The national president of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi said the refinery’s entrance into the diesel market would lead to a crash in diesel prices, as the commodity rose to a high of about N1,700/litre recently.

Maigandi said: “The price of diesel is going to fall because of the release of products from Dangote Refinery. In fact, it is already coming down in Lagos.”

A senior management official of the refinery confirmed the commencement of diesel sales and hinted at the imminent release of Premium Motor Spirit known as petrol into the market.

READ ALSO: Dangote Foundation gifts rice, bread to indigent Nigerians

Despite its recent progress, the Dangote Refinery has faced challenges in releasing refined products into the market since its official inauguration by former President Muhammadu Buhari in May 2023.

Regulatory approvals have been a major hurdle, delaying the refinery’s initial plans to introduce aviation fuel and diesel into the Nigerian market.

A recent report highlighted the refinery’s struggle with regulatory approvals, which hindered its ability to meet the January deadline for product release. However, the refinery had announced on January 12, 2024, that it had commenced production of diesel and aviation fuel.

Aliko Dangote, the chairman of the Dangote Group, expressed gratitude to President Bola Tinubu and various regulatory bodies for their support in realising the project.

He said: “We thank President Bola Tinubu for his support and for making our dream come true. We also thank the NNPC, NUPRC and NMDPRA for their support. These organizations have been our dependable partners in this historic journey.”

The Dangote Refinery, with a capacity of 650,000 barrels per day, holds the title of Africa’s largest refinery.

Situated on a peninsula on the outskirts of Lagos, the refinery aims to transform Nigeria into a net exporter of fuel to other West African countries, marking a significant shift in the region’s energy dynamics.

Credible News.ng

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