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Diesel price crashes as Dangote refinery sells at N1,225/litre



Dangote Obajana Cement plant

Dangote refinery has reportedly started selling diesel at N1,225 per litre, which has led to a drop in prices. 

Dangote refinery is expected to begin the sale and supply of premium motor spirit (PMS) by May 2024.

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

According to plant officials and oil dealers, they sold the product to vendors for between N1,225 and N1,300 per litre, depending on how much they purchased.

The refinery also stated that it intends to begin delivering petroleum to the local market in May of this year.

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

“So some of our marketers have started getting the product, but as an association, we have not gotten the product yet because we want to get the actual rate at which 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 would 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 on.

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

Another oil marketer, Dr. Ralph Arokoyo, CEO of AF Ralph Oil and Gas Ventures, confirmed that the Dangote refinery had started distributing diesel to retailers. He further stated that the factory began 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 (the 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 per litre.

“But in many locations across the federation, the prices are beginning to drop due to the emergence of products from that refinery and the fact that the products have been 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 a 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.