Diesel distributors and attendants in Abeokuta, the capital of Ogun State, has witnessed a notable decrease in diesel prices, with rates ranging from N1,420 to N1,450 per litre.
This reduction reflects a broader trend across Nigeria, where the pump price of Automotive Gas Oil (diesel) has dropped significantly from approximately N1,700 per litre to around N1,350 per litre in various regions.
Reports from different locations such as Ogbomoso and Badagry on Wednesday, corroborate the decline in diesel prices, as confirmed by sources speaking to Saving Point Media.
The drop in prices is attributed to the recent commencement of diesel sales by the Dangote Petroleum Refinery, which began operations and started supplying the domestic market.
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According to Saving Point Media, the $20 billion refinery initiated diesel sales to registered oil marketers last week, with a minimum sale of one million litres per marketer.
The prices ranged from N1,225 to N1,300 per litre, depending on the purchase volume.
This development is anticipated to further drive down diesel prices, which had surged to as high as N1,700 per litre in recent weeks.
Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed optimism about the refinery’s impact on reducing diesel prices.
Beyond diesel, the Dangote refinery is scheduled to introduce Premium Motor Spirit (petrol) to the domestic market by May. Its entry into diesel sales signifies a significant milestone in Nigeria’s energy sector, which has traditionally relied on costly fuel imports.
Despite facing regulatory challenges, the refinery has commenced production of refined petroleum products and aims to become a net exporter of fuel to neighboring West African countries.
The refinery’s operations are expected to enhance Nigeria’s fuel market by increasing availability and potentially lowering prices for consumers.
While awaiting its diesel allocation from the refinery, the Independent Petroleum Marketers Association observes a gradual decline in diesel pump prices nationwide.
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