Diesel price drops by 20.6% as Dangote floods oil market

Sequel to the commencement of the sale of Automotive Gas Oil, also known as diesel by Dangote Refinery to marketers across the country, reports have indicated a significant decline by 20.6 percent in the price of the product to N1,350 per litre in April.

Credible News had earlier reported that the Refinery has commenced sale of diesel to domestic oil marketers, a milestone confirmed by both dealers and officials of the plant.

The national president of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi said the refinery’s entrance into the diesel market is expected to drive down prices significantly.

“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,” he said.

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

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

Nigeria’s inflation and foreign exchange crisis had pushed the prices of the product to about N1,700 per litre in most parts of the nation, including Lagos and Abuja.

Usually, it was mostly imported from the global market.

However, checks by Vanguard on  Wednesday, indicated that the price of diesel started to drop following the awareness that Dangote Petroleum Refinery has pegged its price at N1,225/litre.

The Chief Executive Officer/CEO, Major Energy Marketers Association of Nigeria, MEMAN, Mr. Clement Isong, disclosed that they were now buying diesel and aviation fuel from Dangote Refinery.

He said oil marketers have started to lift diesel and aviation fuel from the $20 billion Dangote Refinery.

He said: “Our members have started lifting diesel and aviation fuel from the Dangote Refinery. It is a good development that will impact the domestic market.”

Credible News.ng

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