Dangote Petroleum Refinery & Petrochemicals has reduced the ex-depot price of diesel by 5%, bringing it down to N1,020 per litre from N1,075 per litre. This latest price adjustment aims to provide economic relief to businesses and consumers across Nigeria.
Since commencing diesel production in January 2024, the refinery has implemented multiple price cuts—from an initial N1,700 per litre to the current rate—offering much-needed financial ease for manufacturers, transporters, and households.
Dangote’s N10 Billion Subsidy Absorption & Market Impact
This latest reduction of N55 per litre comes in the wake of revelations by Development Economist and Public Policy Analyst, Prof. Ken Ife, who highlighted that Dangote Refinery absorbed over N10 billion in costs to ensure nationwide petrol price stability during the 2024 yuletide season.
Speaking on Arise TV, Prof. Ife emphasized how the refinery is transforming Nigeria’s energy landscape. He explained that while the Petroleum Equalisation Fund traditionally offsets price and transportation cost disparities, it currently owes marketers over N80 billion.
“What has actually happened is that the president has shifted the subsidy burden away from the public purse and onto the private sector. The equalisation fund, which was meant to cover the price differential and transportation costs, plays a crucial role. If petroleum is to be sold across the country at a set price, then transportation costs must be accounted for to ensure this is possible. That’s the purpose of equalisation. However, the equalisation fund is reported to owe around N80 billion to the marketers, and this issue is still under discussion.”
“During the Christmas season, which is traditionally the most challenging period, we often face shortages of petroleum, petrol hoarding, and arbitrary price hikes, all of which impact the cost of food. In response, during this last yuletide, the Dangote Group made the decision to absorb the costs. They equalised the price themselves, at a cost of over N10 billion. In doing so, they effectively absorbed the subsidy,” he said.
Nigeria’s Shift Towards Energy Independence & Global Exports
Prof. Ife further noted that the Dangote Refinery is diversifying Nigeria’s petroleum exports beyond Premium Motor Spirit (PMS), positioning the country as a global supplier.
With major international oil giants like BP and Saudi Aramco purchasing refined products from Nigeria, the country is swiftly emerging as a key player in the international petroleum market. He expressed optimism that Nigeria is on the path to energy self-sufficiency while expanding its footprint as a major petroleum export hub.