The Dangote Petroleum Refinery & Petrochemicals has further reduced the price of diesel to ₦1,020 per litre, down from ₦1,075 per litre, in an effort to provide relief to consumers and businesses across Nigeria.
Since commencing diesel production in January 2024, the refinery has slashed diesel prices more than three times, bringing the cost down from an initial ₦1,700 per litre to its current rate.
This move is expected to significantly ease the burden on manufacturers, transporters, and consumers, particularly as businesses struggle with high operating costs.
The latest ₦55 per litre reduction follows revelations by Development Economist and Public Policy Analyst, Prof. Ken Ife, who disclosed that Dangote Petroleum Refinery absorbed over ₦10 billion in costs to ensure petrol was available at a uniform price across Nigeria during the Christmas season.
Speaking on Arise TV, Prof. Ife praised the Dangote Refinery for its transformative impact on Nigeria’s energy sector, adding that the facility is unlocking vast opportunities for export revenue.
He explained that for years, the Petroleum Equalisation Fund (PEF) had been responsible for managing price differentials and transportation costs for petroleum distribution across Nigeria. However, he noted that the equalisation fund reportedly owes marketers over ₦80 billion, further complicating fuel pricing and supply.
“What has actually happened is that the president has shifted the subsidy burden away from the public purse and onto the private sector,” Prof. Ife stated.
“The equalisation fund, which was meant to cover the price differential and transportation costs, plays a crucial role. If petroleum is to be sold across the country at a set price, then transportation costs must be accounted for to ensure this is possible. That’s the purpose of equalisation. However, the equalisation fund is reported to owe around ₦80 billion to the marketers, and this issue is still under discussion.”
He emphasized that during the yuletide period, when Nigeria typically experiences fuel shortages, price hikes, and hoarding, the Dangote Group absorbed the cost themselves, ensuring price stability.
**“During the Christmas season, which is traditionally the most challenging period, we often face shortages of petroleum, petrol hoarding, and arbitrary price hikes, all of which impact the cost of food.
“In response, during this last yuletide, the Dangote Group made the decision to absorb the costs. They equalised the price themselves, at a cost of over ₦10 billion. In doing so, they effectively absorbed the subsidy.”**
Prof. Ife also highlighted how the Dangote Refinery is shifting Nigeria away from its heavy reliance on Premium Motor Spirit (PMS) towards a diversified petroleum export strategy.
He noted that major global oil players, including BP and Saudi Aramco, are now purchasing refined products from Nigeria, positioning the country as an emerging energy export powerhouse.
