Price Of Diesel Drops In Oyo, Lagos, Others As Dangote Sells ₦1,225/Litre

The price of Automotive Gas Oil, commonly known as diesel, has seen a significant reduction, falling from approximately ₦1,700 per litre to around ₦1,350 in various parts of Nigeria.

This price drop is attributed to the commencement of diesel sales by the Dangote Petroleum Refinery last Wednesday.

The refinery, valued at $20 billion, has started supplying diesel to the domestic market, impacting prices positively.

Oil marketers registered with the refinery have been purchasing diesel in large quantities, with a minimum of one million litres sold to each marketer since the sales began.

According to officials from the Dangote plant and oil dealers, the price of diesel has been set between ₦1,225 and ₦1,300 per litre, varying with the volume purchased.

This development has brought a much-needed respite to consumers and businesses reliant on diesel for operations, especially given the recent spikes in energy costs.

In addition to diesel, there is anticipation around the refinery’s plans to introduce Premium Motor Spirit (PMS), commonly known as petrol, into the domestic market by May this year.

The National President, Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, told Punch, “They started pumping out diesel to marketers since last week. They also promised to sell aviation fuel soon. Some of my members confirmed this to me after making the purchase.

“So some of our marketers have started getting the product, but as an association we have not got the product yet, because we want to get the actual rate that it will be sold to us when we buy in bulk. However, they have started selling diesel because some of our marketers have started buying.

“They are selling at ₦1,225/litre and the minimum volume they are giving is one million litres per marketer. Also, they assured us that they will release more products, but for now this (diesel) is what they are starting with. So we are expecting them to release PMS anytime from now.”

Maigandi said the move by Dangote would definitely lead to a crash in diesel price, as the commodity rose to a high of about ₦1,700/litre recently.

He added, “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.”

Another oil marketer, who is the Chief Executive, AF Ralph Oil and Gas Ventures, Dr Ralph Arokoyo, confirmed that the refinery had started the sale of diesel to dealers, adding that the plant started dispensing the product last Wednesday.

Asked if Dangote refinery had started supplying diesel to the market, Arokoyo replied, “Yes they have started. They started diesel sales last Wednesday and they have sold to many marketers including members of IPMAN and MEMAN (Major Energy Marketers Association of Nigeria), as well as other private registered independent dealers.”

When also asked about the minimum volume being sold to dealers and at what rate, Arokoyo said, “One million litres is the minimum and the rate is okay considering what other major tank farms are selling, which is why people are trooping to the refinery now.

“The price ranges between ₦1,250/litre and ₦1,300/litre depending on the volume you are buying. This is good news for Nigerians because in the last few weeks the price of diesel hovered between ₦1,600 and ₦1,700/litre.

“But in many locations across the federation, the prices are beginning to drop due to the emergence of products from that refinery and as the products are being dispatched since last Wednesday. Now you can get AGO (diesel) in some stations at ₦1,400/litre.

“Some are even doing ₦1,350/litre now and I want to believe that in a couple of weeks to come, we should see more reduction in the price of the product as more products from the plant hit the market and spread very well across the country.”