Oil marketers propose new diesel price as Dangote moves to crash cost

Oil marketers in Nigeria are asking Dangote Petroleum Refinery to lower its diesel price.

They argue that the current prices of N1,225 and N1,300 are too expensive to break even, considering the refinery’s location in Nigeria and the recent gain of the naira against the US dollar.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) proposed a price range of N700 and N850 per litre for Dangote diesel.

According to reports, IPMAN is championing the pricing challenge. They point out that imported diesel currently costs N1,250 per litre in Nigeria due to the resurgence of the naira.

IPMAN outlines the benefits of low diesel costs

The marketers say the commodity's price reduction will benefit Nigerians in several ways, such as low transportation costs, reduced profiteering, and strengthening the naira.

IPMAN reportedly plans to meet with the Dangote refinery's management next week to discuss the pricing issue.

The oil marketers will also seek intervention from the Nigerian government.

The 650,000 bpd-capacity refinery began supplying the domestic market with diesel, which sparked initial hope for a price decrease.

IPMAN is pushing for a price review despite its members having already purchased products from the refinery.