The price of diesel has experienced a notable decline across various regions in Nigeria, dropping from approximately N1,700/liter to around N1,350/liter in select areas. This shift follows the entry of Dangote Petroleum Refinery into the market, which began supplying the commodity to domestic consumers last Wednesday.
According to reports gathered on Tuesday, the $20 billion refinery initiated the distribution of diesel to registered oil marketers, with each recipient receiving a minimum allocation of one million liters. Confirming the development, officials from the refinery and oil dealers revealed that the product was sold to marketers at prices ranging between N1,225/liter and N1,300/liter, contingent upon the volume of purchase.
Additionally, it has been learned that the refinery is poised to introduce Premium Motor Spirit (PMS), commonly known as petrol, into the domestic market by May of this year.
Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria, acknowledged the commencement of diesel sales by the Dangote refinery, emphasizing that while the association is yet to procure the product in bulk, individual members have begun purchasing it. Maigandi highlighted the refinery’s commitment to expanding its product offerings, with expectations for the imminent release of PMS.
Commenting on the potential impact of Dangote’s entry into the market, Maigandi expressed optimism regarding a reduction in diesel prices, citing the recent surge in prices to approximately N1,700/liter. He noted that the downward trend in prices has already been observed in Lagos.
Dr. Ralph Arokoyo, Chief Executive of AF Ralph Oil and Gas Ventures, corroborated the information, confirming the commencement of diesel sales by the refinery starting from last Wednesday.