Marketers Express Concerns Over Dangote Refinery’s Diesel Price Cuts Impacting Business

Petroleum marketers in Nigeria have raised concerns over the effects of reduced diesel prices from Dangote Refinery on their operations. In a letter to President Bola Tinubu, the marketers highlighted that the refinery’s local diesel price drop to ₦900 per litre is negatively impacting their business.

Speaking during a Twitter Spaces session organized by Nairametrics, Devakumar Edwin, Vice President of Dangote Industries Limited, outlined the refinery’s challenges.

He noted that despite the reduced diesel prices, the facility, located in the Lekki Free Zone near Lagos, faces difficulties selling up to 29 tankers of diesel daily due to limited local demand.

Edwin emphasized that this situation has forced Dangote Refinery to export a large portion of its diesel and aviation fuel. He also assured that the refinery’s petrol production, which accounts for 44% of its total output, is sufficient to meet Nigeria’s local fuel needs.

With a daily production capacity of 650,000 barrels, Dangote Refinery has been active in both domestic sales and exports. It began exporting naphtha in March, low-sulphur straight run fuel oil (LSSR) in May, and has been selling diesel and jet fuel domestically since April. In June, the refinery started exporting diesel fuel that meets European standards.