Dangote Refinery Slashes Fuel Prices Again, Reduces Petrol to N970, Diesel to N940, and Aviation Fuel to N980 easing Nigeria’s economic strain
In a continued effort to ease the financial burden on Nigerians, Dangote Petroleum Refinery has made another significant reduction in fuel prices, including diesel, aviation fuel, and Premium Motor Spirit (PMS). Following its previous cut to N1,000 per litre just two weeks ago, the refinery has further reduced diesel prices to N940 per litre, while aviation fuel now costs N980 per litre.
This latest price reduction is part of Dangote Refinery’s broader strategy to support Nigerians in navigating the country’s economic challenges. The price cuts apply to bulk purchases, with the N940 rate for buyers of five million litres or more, and N970 for customers purchasing one million litres or more. As part of a new partnership with MRS Oil and Gas, the prices will also be available at MRS stations across the country, ensuring that retail consumers can access affordable fuel at major airports and other locations.
The move is a continuation of Dangote Refinery’s commitment to improving the national economy and supporting local industries. This recent round of reductions comes after previous price adjustments, including a notable drop from N1,700 to N1,200 and then N1,000 per litre within the last few weeks. The Director-General of the Manufacturers Association of Nigeria (MAN), Mr. Ajayi Kadiri, praised the reduction as a significant demonstration of the potential for local industries to positively impact the nation’s economy.
Additionally, Dangote Refinery has reduced the price of petrol for marketers from N990 to N970 per litre. This price cut serves as an end-of-year gesture to show appreciation to Nigerians for their support in bringing the refinery to fruition. The refinery has also emphasized that it will continue to uphold high standards of product quality while ramping up production to meet the nation’s fuel needs.
Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is negotiating clear terms for the daily, weekly, or monthly lifting of petrol from the Dangote Refinery. With the Federal Government’s approval for marketers to bypass the Nigerian National Petroleum Company (NNPCL) and directly source fuel from Dangote, the country is poised to see a more streamlined and efficient fuel distribution system. This step is expected to further lower costs and improve business operations across the nation.
Newsanalytrics analysis
The reduction in fuel prices by Dangote Petroleum Refinery is a significant development that is expected to have a positive impact on the Nigerian economy. The move is seen as a strategic effort by the refinery to cushion the effect of economic hardship in Nigeria.
The price reduction is also expected to boost economic activities in the country, as lower fuel prices will lead to reduced production costs for manufacturers and lower transportation costs for commuters.
Furthermore, the reduction in fuel prices is expected to lead to a decrease in the inflation rate, which has been a major concern for the Nigerian government. Lower fuel prices will lead to reduced prices of goods and services, which will in turn lead to a decrease in the inflation rate.
However, it is worth noting that the sustainability of the price reduction depends on various factors, including the global crude oil price, the exchange rate, and the refinery’s production costs. If these factors become unfavorable, the refinery may be forced to increase prices again.
In addition, the reduction in fuel prices has also sparked concerns about the impact on the government’s revenue. The Nigerian government generates a significant portion of its revenue from fuel subsidies, and a reduction in fuel prices could lead to a decrease in government revenue.
Conclusion:
The reduction in fuel prices by Dangote Petroleum Refinery is a welcome development that is expected to have a positive impact on the Nigerian economy. However, the sustainability of the price reduction depends on various factors, and the government needs to carefully consider the impact on its revenue
