By Milcah Tanimu

· Fuel dealers witness drop to N1,225/litre; significant price cuts in Oyo, Lagos, Ogun

The recent plunge in the pump price of Automotive Gas Oil, commonly known as diesel, has sparked relief among consumers across Nigeria. The price has tumbled from its previous highs of approximately N1,700/litre to around N1,350/litre in select areas, attributed to the introduction of competitively priced diesel by the Dangote Petroleum Refinery.

Reports indicate that the $20 billion refinery commenced supplying diesel to the domestic market last Wednesday, marking a significant milestone in the nation’s energy landscape.

Each registered oil marketer procured a minimum of one million litres from the refinery at rates ranging from N1,225/litre to N1,300/litre, contingent upon purchase volume.

Simultaneously, there are indications that the refinery is gearing up to release Premium Motor Spirit (PMS), commonly referred to as petrol, into the market starting May this year.

Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria, confirmed the commencement of diesel sales, anticipating a broader impact on pricing dynamics. He underscored that diesel prices, which had recently soared to around N1,700/litre, are expected to experience a significant decline, a sentiment echoed by other industry stakeholders.

Dr. Ralph Arokoyo, Chief Executive of AF Ralph Oil and Gas Ventures, corroborated the onset of diesel sales by Dangote refinery, emphasizing the positive implications for consumers amidst recent price fluctuations.

Regarding the upcoming availability of petrol, Arokoyo expressed optimism, citing assurances from the refinery management regarding its imminent release.

A senior official at Dangote refinery echoed similar sentiments, affirming the sale of diesel to marketers and hinting at the impending introduction of petrol to the market.

Despite encountering regulatory hurdles, Dangote refinery has persevered in its efforts to roll out refined products to the market, following its inauguration by former President Muhammadu Buhari in May last year.

The refinery’s foray into diesel sales marks a significant development, complementing its earlier tenders for fuel export. With Nigeria historically reliant on costly fuel imports, Dangote refinery’s emergence signals a potential shift towards self-sufficiency and regional export capacity.

While the broader impact of Dangote refinery’s operations on the fuel market awaits realization, consumers can anticipate more competitive pricing and increased availability of refined products in the near future.