Nigeria’s recently inaugurated mega refinery has announced a further reduction in the prices of diesel and aviation fuel within the domestic market, marking the third such adjustment since its commencement of product delivery in March.
According to an emailed statement from Dangote Industries Ltd., the refinery will slash the price of diesel by 6%, now selling at 940 naira ($0.76) per liter, while aviation fuel will be priced at 980 naira.
These revised prices are applicable to marketers purchasing over 5 million liters of fuel.
Nigeria’s persistent issues with inadequate power supply have led to significant reliance on diesel-powered generators by large businesses for electricity.
At the outset of March, diesel was retailing for as high as 1,600 naira per liter. Prior to Dangote’s entry into the market last month, Nigeria primarily depended on imported refined fuel.
Initially priced at 1,200 naira per liter, Dangote has progressively reduced the price, reaching 1,000 naira two weeks ago.
“The new price is in consonance with the company’s commitment to cushion the effect of economic hardship in Nigeria,” Dangote Group spokesman Anthony Chiejina said.
Analysts suggest that the Dangote plant, with a capacity of 650,000 barrels per day located outside Lagos, is preparing two units to facilitate gasoline production, a development poised to significantly impact the fuel market in Nigeria and the surrounding region.
Currently operating at approximately 300,000 barrels per day, roughly half of its designated capacity, the refinery has commenced the shipment of jet fuel, gasoil, and naphtha as it expands its product offerings to encompass a full range of products.