Dangote Refinery reduces diesel price to N1000/Litre to combat Inflation challenges

In a strategic move to address the persistent issue of high inflation in the country, the Dangote Petroleum Refinery, under the stewardship of Chairman Alhaji Aliko Dangote, has initiated a significant reduction in the price of Automotive Gas Oil (AGO), commonly known as diesel.

This notable adjustment sees diesel now being sold at N1000 per litre, a notable drop from the previous price of N1200 per litre quoted merely two weeks ago.

Alhaji Aliko Dangote, the astute businessman at the helm of the Dangote Group, had previously signaled this shift, outlining the refinery’s commitment to mitigating the nation’s soaring inflation rates. He emphasized the refinery’s proactive stance, stating, “Now, in our refinery, we started selling diesel at about N1,200 instead of N1,650, and I’m sure as we go along, things will continue to improve quite a lot.”

This reduction in price is poised to directly alleviate the financial burden on consumers, with Dangote expressing optimism that such measures would yield tangible improvements in inflation metrics.

Attributing the surge in diesel prices to the depreciation of the national currency in the foreign exchange market, Alhaji Dangote remained hopeful, suggesting that as the naira stabilizes, the cost of diesel would gradually recede.

This move by the Dangote Petroleum Refinery not only serves as a pragmatic response to economic challenges but also underscores the refinery’s commitment to fostering economic stability and consumer welfare.

Insights from the National Bureau of Statistics (NBS) Diesel Price Watch for February 2024 further underscore the urgency of addressing diesel pricing.

With diesel prices witnessing a staggering year-on-year increase of over 50.20%, reaching an average of N1,257.06 per litre nationwide, the need for intervention becomes paramount. Some states have reported diesel prices exceeding N1500 per litre, exacerbating the financial strain on consumers and businesses alike.

The recent initiative by the Dangote refinery to supply diesel and aviation fuel to marketers, albeit after several postponements since its inauguration in May 2023, marks a significant step towards alleviating the prevailing economic challenges.

Despite the initial hurdles, the refinery’s commitment to providing essential fuels at more affordable rates signals a promising trajectory towards economic resilience and stability.

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