The $20 billion Dangote Petroleum Refinery has reduced diesel prices by 16.6% to N1,000 per litre, down from N1,200 per litre, in an effort to boost Nigeria’s domestic economy. Diesel prices were relatively high for months, owing mostly to the product’s importation from the worldwide market and the resulting foreign exchange crisis.
“In an unprecedented step, Dangote Petroleum Refinery has announced a further drop of diesel prices from 1200 to 1,000 naira per litre.”
While rolling out the products, the refinery supplied at a significantly reduced price of N1,200 per litre three weeks ago, representing a more than 30% reduction from the previous market price of around N1,600 per litre.
The impact of devaluation
He stated: “There’s a lot of progress because, if you look at it here, one of the key challenges that we’ve had was the narrow devaluation that has gone very aggressively up to approximately N1,900. “But right now, we’re back to around N1,250 or N1,300, which is a significant improvement.
As you can see, quite a few items have increased. Even now, when you go to the market and buy something that we produce locally, such as flour or something, people charge you more.
“Why? Because they are paying extremely expensive diesel prices. And, for example, in our refinery, we began selling diesel at around $1,200 for $1,650. “And I’m confident that as we progress, things will continue to improve significantly.
Diesel price
Even now, there is a significant influence. If you look at it now, when you’re paying N1,650 or N1,700 for a litre of diesel, that price has been reduced by over one-third, and you’re now spending 1,200.
Source: vanguardngr.com
