Diesel price falls as Dangote sells at N1,225 per litre

Following the commodity's sale by the Dangote Petroleum Refinery, the pump price of automotive petrol oil, also known as diesel, has decreased from approximately N1,700/litre, which it was selling for, a few weeks ago, to approximately N1,350/litre in some areas nationwide. 

On Tuesday, information surfaced that the $20 billion refinery began supplying fuel to the home market last Wednesday. Since the plant started selling diesel, it has sold a minimum of one million litres to every registered oil marketer that received the fuel.

According to representatives of the multibillion-dollar factory and oil dealers, the product was sold to marketers for N1,225 to N1,300 per litre, depending on the quantity purchased. 

This was announced concurrently with information that the refinery planned to begin supplying Premium Motor Spirit to the domestic market in May of this year.

“They started pumping out diesel to marketers since last week. They also promised to sell aviation fuel soon. Some of my members confirmed this to me after making the purchase,” the National President, Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, told one of our correspondents.

He added, “So some of our marketers have started getting the product, but as an association, we have not got the product yet, because we want to get the actual rate that it will be sold to us when we buy in bulk. However, they have started selling diesel because some of our marketers have started buying.

“They are selling at N1,225/litre and the minimum volume they are giving is one million litres per marketer. Also, they assured us that they will release more products, but for now, this (diesel) is what they are starting with. So we are expecting them to release PMS anytime from now.”

Given that the price of fuel recently reached a high of over N1,700 per litre, Maigandi predicted that Dangote's action would undoubtedly cause the commodity to plummet.

Source