The pump price of Automotive Gas Oil, commonly known as diesel, has witnessed a significant drop across various locations in Nigeria, falling from approximately N1,700/litre to around N1,350/litre.
This price adjustment follows the commencement of diesel sales by the Dangote Petroleum Refinery, a development that has spurred optimism among oil marketers and consumers alike.
Reports indicate that the $20 billion refinery began supplying diesel to the domestic market last Wednesday, marking a pivotal moment in the country’s energy landscape.
Each registered oil marketer received a minimum allocation of one million litres from the refinery, with prices ranging between N1,225/litre and N1,300/litre depending on the volume of purchase.
In addition to diesel, the refinery is poised to release Premium Motor Spirit (PMS), commonly referred to as petrol, to the domestic market in May this year.
This move is anticipated to further alleviate concerns about fuel availability and affordability, particularly given the significant role petrol plays in the daily lives of Nigerians.
Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria, welcomed the refinery’s initiative, expressing confidence that it would lead to a considerable reduction in diesel prices.
He noted that the recent surge in diesel prices, which reached as high as N1,700/litre, is expected to subside as the refinery’s products become more widely available.
Echoing Maigandi’s sentiments, Dr. Ralph Arokoyo, Chief Executive of AF Ralph Oil and Gas Ventures, confirmed the commencement of diesel sales by the refinery and emphasized the positive impact on market dynamics.
Arokoyo highlighted the competitive pricing offered by the refinery, ranging between N1,250/litre and N1,300/litre, which is driving increased demand among oil marketers.
Furthermore, Arokoyo underscored the refinery’s commitment to providing timely information to dealers, including the forthcoming availability of petrol, which is scheduled for release between now and May.
This announcement has sparked optimism within the industry, as petrol remains a critical component of Nigeria’s energy consumption landscape.
