'N700 per litre' - Marketers expect new diesel price from Dangote refinery as naira gains more

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed gratitude to the Dangote Refinery for bringing down the fuel price from more than N1,200 to N1,000.

According to IPMAN's National Vice President, Hammed Fashola, the Dangote refinery is expected to lower its diesel price even further to around N700 per litre.

He claims that the naira's recovery versus the dollar will result in a noticeable drop in the price of diesel.

He stated: “It is a good development, a welcome development. That is what we expected. We are still expecting that diesel will come down more. Because if you look at the dollar rate to the naira now, the currency is doing well against the dollar. The exchange rate now is almost N1,000 on the black market. We still expect that the dollar will come down more.”

The CEO of IPMAN clarified that since the product is made locally, all shipping difficulties, customs charges, and other expenses have been eliminated, resulting in a price reduction.

He said: “When you look at the diesel being produced here, there are lots of factors that have come to play; like the issue of shipment, the issue of tax, Customs and others. All those are not there again. So, we marketers expect diesel to come to N700 per litre; that is our prayer, and at that level, it will be a blessing to everybody. That is what we are looking at. What we produce here must be quite different from what is imported. That is what we expected."

Recall that about two weeks ago, Dangote started selling diesel, bringing down the price from N1,600 per litre to N1,250 per litre. Last Tuesday, the refinery announced a further price reduction, stating that the fuel will now be sold for N1,000 per litre.

Femi Oladele, an economist, praised the price reduction, as seen in a Punch report. According to him, the progress will cause production costs to drop dramatically, impacting the price of goods and services. He also said that new companies would come up, and some of the ones that closed due to high costs might reappear.

He emphasised the possible savings in foreign currency might increase the country's reserves. The economist was upbeat about the future, stating that if the current trend keeps up, the nation should experience a sharp rise in economic activity and a decline in inflation.

Dangote Refinery sets the record straight

Legit.ng reported that an online article questioning the quality of Dangote Industries Limited's diesel supplied to the Nigerian market has drawn harsh criticism from the company.

A particular media outlet had earlier claimed that the Dangote Refinery's high sulfur fuel caused the refiner to lower domestic prices by 37%.

The Dangote Group called the accusation "false, baseless, and mischievous, aimed at tarnishing the reputation of our esteemed organisation" in a statement issued by Mr. Anthony Chiejina, the corporate spokesperson.