• Thursday, May 30, 2024
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BusinessDay

Respite for manufacturers as Dangote refinery sells diesel at N1000/litre

In a welcomed turn for manufacturers grappling with rising operational costs, Dangote Refinery has revealed that diesel will be sold to marketers at N1000 per litre, thereby providing a much-needed respite to businesses in the country.

The announcement comes amidst concerns over the continuous surge in fuel prices, which have been exacerbated by global market fluctuations and supply chain disruptions.

As the largest refinery in Africa, Dangote Refinery’s decision to stabilise diesel prices offers a glimmer of hope for industries struggling to maintain profitability amid economic uncertainties. With diesel being a crucial component in manufacturing processes, the move is expected to ease financial burdens on industries across Nigeria.

The refinery stated in a statement that “this significant reduction in the price of diesel, at Dangote Petroleum Refinery, is expected to positively affect all the spheres of the economy and ultimately reduce the high inflation rate in the country.”

Prior to this development, the refinery made a 30 percent reduction from the previous market price of about N1,600 per litre to N1,200 while rolling out the products three weeks ago.

On Monday, the refinery shared videos on the social media platform X (formerly Twitter), showcasing the loading of fuel onto both ships and trucks.

In one video, the Golden Lavender vessel can be seen being loaded with diesel. Shipping information further suggests that the shipment is likely bound for a buyer within Nigeria.

Kpler data reveals that multiple ships have been loading various petroleum products from the Dangote refinery. Notably, the Nord Master, a recently loaded vessel, is indicating a route toward Amsterdam-Rotterdam-Antwerp, the oil trading hub of northwest Europe.

Another video from Dangote shows trucks being loaded, also with diesel. Traders are closely monitoring the refinery’s progress as it ramps up production. Once fully operational, the refinery will boast a capacity to process 650,000 barrels per day, surpassing any other plant in Europe or Africa.