In this article we will be looking at how Diesel price drops as Dangote sells N1,225/litre, supplies of petrol begins in May.
The pump price of Automotive Gas Oil, popularly called diesel, has dropped from about N1,700/litre which it sold for a few weeks ago, to around N1,350/litre in some locations across the country following the sale of the commodity by the Dangote Petroleum Refinery. It was gathered on Tuesday that the $20bn worth refinery started pumping out diesel to the domestic market last Wednesday. It sold a minimum of one million litres to each registered oil marketer that got the product from the plant since it commenced diesel sale.
Read: PH Refinery: Marketers Eye Fuel Price Reduction, Ready to Load
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. N1,225/litre “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.” Maigandi said the move by Dangote would definitely lead to a crash in diesel price, as the commodity rose to a high of about N1,700/litre recently. “The price of diesel is going to fall because of the release of products from Dangote refinery. In fact, it is already coming down in Lagos,” Maigandi stated.
Read: Oil Marketers await Dangote fuel, four weeks after production take-off
Another oil marketer, who is the Chief Executive, AF Ralph Oil and Gas Ventures, Dr Ralph Arokoyo, confirmed that the refinery had started the sale of diesel to dealers, adding that the plant started dispensing the product last Wednesday. Asked if Dangote refinery had started supplying diesel to the market, Arokoyo replied, “Yes, they have started. They started diesel sales last Wednesday and they have sold to many marketers including members of IPMAN and MEMAN (Major Energy Marketers Association of Nigeria), as well as other private registered independent dealers.”
On whether the company informed dealers when it would start releasing petrol into the market, Arokoyo replied in the affirmative. “They (Dangote refinery) said it (petrol) will be available between now and May, which is next month. We are optimistic about this, because PMS is largely used by Nigerians,” the oil marketer stated.