Dangote Refinery Slashes Diesel Price to ₦1,020/Litre, Easing Pressure on Industries

Lagos, Nigeria – In a major relief for businesses and industries across Nigeria, Dangote Petroleum Refinery & Petrochemicals has further reduced the price of diesel to ₦1,020 per litre, down from ₦1,075 per litre. This latest price cut, announced on Wednesday, marks another strategic move by Africa’s largest refinery to ease the cost burden on businesses reliant on diesel for operations.

A Series of Price Reductions Benefiting the Economy

Since commencing diesel production in January 2024, Dangote Refinery has consistently lowered diesel prices. From an initial high of ₦1,700 per litre, the refinery has now cut prices to ₦1,020 per litre, marking a significant 40% reduction in just a few months.

The refinery’s pricing strategy aligns with its commitment to stabilizing Nigeria’s energy market, reducing inflationary pressure, and supporting industries that have been grappling with rising energy costs.

Economic Impact: Industries and Consumers Set to Benefit

The latest price cut is expected to have a widespread economic impact, particularly in sectors such as:

• Manufacturing: Lower diesel costs will reduce production expenses, making goods more affordable for consumers.
• Transportation & Logistics: Haulage companies and transport services will see cost savings, potentially leading to lower fares.
• Agriculture: Farmers who depend on diesel-powered equipment stand to benefit from reduced operational costs.

Economic analysts believe that Dangote’s continued price reductions could help curb Nigeria’s high inflation rate, which has been fueled by soaring energy prices.

Challenges in the Local Market: Limited Patronage by Marketers

Despite the price reduction, some petroleum product marketers have been slow to embrace the refinery’s offerings. Reports indicate that certain marketers have voiced concerns that the reduced prices are impacting their profit margins.

According to Aliko Dangote, the President of the Dangote Group, local fuel marketers have even appealed to President Bola Tinubu, expressing concerns that the refinery’s competitive pricing is disrupting their business. As a result, Dangote Refinery has been exporting a significant volume of its diesel and aviation fuel to international markets where demand remains strong.

Industry Reactions: A Welcome Development

The Manufacturers Association of Nigeria (MAN) has applauded Dangote Refinery’s price cuts, noting that lower diesel costs will revitalize industries, enhance production, and sustain employment.

"This price reduction is a game-changer for businesses. Many companies that shut down due to high energy costs may now resume operations," a spokesperson from MAN stated.

Similarly, economic experts predict that if Dangote’s pricing strategy continues, it could reshape Nigeria’s energy landscape, reducing the country’s dependency on imported petroleum products.

Looking Ahead: Can the Price Stay Low?

The question now is whether Dangote Refinery can sustain these lower prices in the face of global crude price fluctuations and local market resistance. Analysts suggest that further government support and policy adjustments could help ensure long-term price stability, benefiting both businesses and consumers.

Conclusion: A Milestone for Nigeria’s Energy Sector

With this latest price reduction, Dangote Refinery has reaffirmed its position as a key player in Nigeria’s economic transformation. By making diesel more affordable, the refinery is empowering industries, easing inflationary pressures, and strengthening Nigeria’s energy security.

As businesses and consumers embrace the new pricing model, the refinery’s impact on Nigeria’s economic growth and industrial sustainability is expected to be profound.