Dangote Makes Changes to Diesel Price as Petrol Costs Rise to New High

Dangote Makes Changes to Diesel Price as Petrol Costs Rise to New High

  • Diesel price at the Dangote Refinery has skyrocketed to N1,100 per litre as the naira continues to fall against the dollar
  • Oil marketers reported that the refinery increased the price about two weeks ago, leading to them buying it at about N1,200 per litre
  • Also, petrol prices have increased in many private depots to about N710 per litre, which has led to an increase in pump price to N750 per litre

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

The Dangote Petroleum Refinery has raised the diesel price from N940 per litre to N1,100 due to the slide in the naira’s value against the US dollar.

On April 17, 2024, the refinery reduced the product’s price from N1,200 per litre to N1,000, following marketers' calls for a price slash.

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Dangote refinery increases diesel price, NNPC, IPMAN
Chairman of the Dangote Group, Aliko Dangote Credit: Bloomberg/Contributor
Source: Facebook

Dangote refinery slashes prices of diesel and aviation fuel

On April 24, 2024, the refinery crashed the diesel and aviation fuel prices to N940 per litre and N980, respectively.

After a week, the $20 billion facility again announced another price crash for diesel but with a caveat that the changes only applied to dealers buying up to five million litres and above. 

However, on Tuesday, May 21, 2024, diesel costs from the facility rose from N940 per litre to N1,100.

Punch reports that some other dealers who bought the product said they purchased at N1,200 per litre.

Oil marketers blame the naira's crash

Oil marketers reported that the refinery's hike in diesel prices was due to the recent naira crash against the dollar.

Reports say the national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maiandi, disclosed that the refinery had earlier reduced its diesel price to about N940 per litre but raised it to N1,100.

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Maigandi attributed the rise to the naira’s slide against the US dollar.

IPMAN’s national public relations officer, Ukadike Chinedu, reportedly said the naira’s crash against the dollar is driving up the cost of the commodity at the refinery.

He stated that the refinery imports crude oil from abroad and that crude oil is usually priced in dollars.

Depot price rises to N710/litre in Lagos

The development comes as oil marketers report that depot owners have also hiked petrol prices to N710 per litre.

Vanguard reports that with the increase, petrol pump prices at outlets owned by IPMAN also increased to between N730 to N750 per litre, leading to queues resurfacing at some filling stations operated by major marketers and NNPC, which sell the product at an average price of N650 per litre.

Depot owners reportedly sold the product for between N701 and N735 per litre, while others sold it for N705 per litre.

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Filling stations to begin selling CNG fuel priced at N200

Legit.ng reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) ordered all filling stations across the country to commence the sale of Compressed Natural Gas (CNG).

Engr Farouk Ahmed, the chief executive of NMDPRA, disclosed this during a meeting in Abuja. He said it was mandatory for filling stations to increase CNG accessibility for consumers.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

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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