Oil Marketers Propose New Diesel Price as Dangote Moves to Crash Cost

Oil Marketers Propose New Diesel Price as Dangote Moves to Crash Cost

  • Oil marketers in Nigeria are pushing for a review of the price of diesel from the Dangote Refinery
  • The marketers are proposing between N700 and N850 per litre for the Dangote refinery, which currently sells the product at N1,300 per litre
  • The marketers say there is a need for reduction considering the recent gains of the naira against the US dollar

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Oil marketers in Nigeria are asking Dangote Petroleum Refinery to lower its diesel price.

They argue that the current prices of N1,225 and N1,300 are too expensive to break even, considering the refinery’s location in Nigeria and the recent gain of the naira against the US dollar.

Marketers propose new diesel price, Dangote refinery
Oil Marketers are asking Dangote for diesel price review Credit: Bloomberg / Contributor
Source: Getty Images

Marketers propose new diesel price

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) proposed a price range of N700 and N850 per litre for Dangote diesel.

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According to reports, IPMAN is championing the pricing challenge. They point out that imported diesel currently costs N1,250 per litre in Nigeria due to the resurgence of the naira.

IPMAN outlines the benefits of low diesel costs

The marketers say the commodity's price reduction will benefit Nigerians in several ways, such as low transportation costs, reduced profiteering, and strengthening the naira.

IPMAN reportedly plans to meet with the Dangote refinery's management next week to discuss the pricing issue.

The oil marketers will also seek intervention from the Nigerian government.

The 650,000 bpd-capacity refinery began supplying the domestic market with diesel, which sparked initial hope for a price decrease.

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IPMAN is pushing for a price review despite its members having already purchased products from the refinery.

Dangote refinery crashes diesel price

Legit.ng earlier reported that the pump price of diesel has dropped from N1,700 per litre, which it sold a few weeks ago, to about N1,350 per litre in some locations in Nigeria following the product's sale by Dangote Refinery.

Findings show that the $20 billion, 650,000 bpd-capacity refinery began pumping diesel to the domestic market on Wednesday, March 27, 2023.

Since it began selling diesel, the company reportedly sold a minimum of one million litres from the refinery to each registered marketer.

Source: Legit.ng

Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

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