The Dangote Petroleum Refinery has increased the price of diesel from ₦940 per litre to ₦1,100 per litre, responding to the continuous depreciation of the Nigerian naira against the US dollar….READ FULL ARTICLE HERE

TheNGblog had earlier reported that the Dangote refinery had reduced the diesel prices to ₦940/litre. This decision followed consultations with oil marketers and an initial price reduction from ₦1,200/litre to ₦1,000/litre on April 17.

This trend of price adjustments reflected the refinery’s responsive pricing strategy in relation to market dynamics.

Punch Newspaper, however, reports that this week’s price hike has been directly attributed to the adverse effects of the naira’s instability on currency markets.

“The increase in diesel price is a result of the recent crash of the naira against the dollar,” explained Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN).

Further insights provided by the National Public Relations Officer of IPMAN, Chief Ukadike Chinedu, revealed the refinery’s intrinsic challenges due to currency depreciation.

“The refinery imports a significant portion of its crude oil, which is priced in dollars; hence, the fluctuations in exchange rates directly impact the cost of refined products,” Ukadike said.

During April, the naira had shown signs of improvement, which positively influenced commodity prices briefly.

However, this improvement was short-lived, as the naira plummeted to over ₦1,400/$ in May, further complicating pricing strategies for businesses reliant on imported goods.

According to a Bloomberg report, the Dangote refinery, a significant industrial project by Africa’s richest man, Aliko Dangote, has also been reportedly seeking to purchase millions of barrels of US crude to bolster its operations.

This move indicates the refinery’s strategic adjustments in response to operational demands and market conditions.

In addition to the diesel price update, the refinery has announced its plans to commence the distribution of Premium Motor Spirit (PMS), commonly known as petrol, domestically starting next month.

This development is seen as a potential game-changer in reducing Nigeria’s dependency on imported petrol.

Oil marketers have reacted positively to the announcement, expressing hope that the refinery’s entry into the petrol market could lead to more competitive pricing.

“We anticipate that the price of petrol from Dangote will be lower than the current rates offered by NNPC, ideally around ₦500 per litre,” Maigandi remarked, highlighting the sector’s expectations for relief in fuel costs….READ FULL ARTICLE HERE

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