Dangote Petroleum Refinery & Petrochemicals has once again reduced the price of diesel, bringing it down to N1,020 per litre from N1,075 per litre, marking yet another significant price cut since it began production in January 2024. The refinery had initially sold diesel at N1,700 per litre before implementing multiple reductions, offering much-needed relief to businesses and consumers grappling with high energy costs.
This latest price cut of N55 per litre follows revelations that Dangote Refinery sacrificed over N10 billion to keep petrol prices stable across Nigeria during the festive season. Development economist Ken Ife praised the refinery’s intervention, explaining that it has taken on a role traditionally handled by the Petroleum Equalization Fund, which currently owes marketers over N80 billion in unpaid subsidies.
Speaking on the impact of Dangote’s moves, Ife highlighted how the refinery helped prevent the usual petrol shortages, hoarding, and price hikes that typically occur during the Christmas period. By absorbing these costs, Dangote effectively provided a private-sector subsidy, ensuring nationwide fuel availability and stable pricing at a time of economic strain.
Beyond price reductions, the 650,000-barrel-per-day facility is also reshaping Nigeria’s energy landscape by shifting focus from domestic Premium Motor Spirit (PMS) consumption to petroleum exports. Major international buyers, including BP and Saudi Aramco, have already begun purchasing refined products from the refinery, signaling Nigeria’s growing influence in the global energy market.
Ife emphasized that Nigeria is now on track to achieve self-sufficiency in petroleum products while positioning itself as a major energy exporter. As Dangote Refinery continues to expand its refining capacity and optimize its operations, the country is expected to reduce its reliance on imported fuels and solidify its standing as an African energy powerhouse.
