Dangote’s Diesel Price Drop to N1,225/Litre Leads to Market Shift

Dangote’s diesel price drops to N1,225 per letre which has also led to a drop in prices. They will also be supplying petrol in May.

The cost of diesel at the pump has recently decreased, falling from approximately N1,700 per liter a few weeks ago to around N1,350 per liter in certain areas across the country as a result of the Dangote Petroleum Refinery selling the product.

VerseNews reports that the official of the plant and oil sellers have mentioned that they sold the product to sellers at prices ranging from N1,225 to N1,300 per liter, depending on how much they bought.

It was also mentioned that the refinery plans to begin supplying Petroleum in May this year to the local market.

“They started pumping out diesel to marketers since last week. They also promised to sell aviation fuel soon. Some of my members confirmed this to me after making the purchase,” said an official.

“So some of our marketers have started getting the product, but as an association we have not got the product yet, because we want to get the actual rate that it will be sold to us when we buy in bulk. However, they have started selling diesel because some of our marketers have started buying.

“They are selling at N1,225/litre and the minimum volume they are giving is one million litres per marketer. Also, they assured us that they will release more products, but for now this (diesel) is what they are starting with. So we are expecting them to release PMS anytime from now.”

“The price of diesel is going to fall because of the release of products from Dangote refinery. In fact, it is already coming down in Lagos,” mentioned the National President, Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi.

Another oil marketer, Dr. Ralph Arokoyo, CEO of AF Ralph Oil and Gas Ventures, verified that the refinery has initiated the distribution of diesel to retailers. He also mentioned that the facility commenced supplying the product as of last Wednesday.

“Yes they have started. They started diesel sales last Wednesday and they have sold to many marketers including members of IPMAN and MEMAN (Major Energy Marketers Association of Nigeria), as well as other private registered independent dealers.”

“One million litres is the minimum and the rate is okay considering what other major tank farms are selling, which is why people are trooping to the refinery now.

“The price ranges between N1,250/litre and N1,300/litre depending on the volume you are buying. This is good news for Nigerians because in the last few weeks the price of diesel hovered between N1,600 and N1,700/litre.

“But in many locations across the federation, the prices are beginning to drop due to the emergence of products from that refinery and as the products are being dispatched since last Wednesday. Now you can get AGO (diesel) in some stations at N1,400/litre.

“Some are even doing N1,350/litre now and I want to believe that in a couple of weeks to come, we should see more reduction in the price of the product as more products from the plant hit the market and spread very well across the country.”

“They (Dangote refinery) said it (petrol) will be available between now and May, which is next month. We are optimistic about this, because PMS is largely used by Nigerians,” they added.