Oil Price Crashes As Dangote Hits Market With Heavy Supply

The cost of Automotive Gas Oil (diesel) has seen a significant reduction in recent weeks, dropping from approximately N1,700 per liter to around N1,350 per liter in various parts of the country.

This reduction follows the introduction of diesel sales by the Dangote Petroleum Refinery, valued at $20 billion.

According to reports gathered on Tuesday, the refinery commenced diesel sales to the domestic market the previous Wednesday, offering a minimum of one million liters to registered oil marketers. The product was dispensed to marketers at rates ranging from N1,225 to N1,300 per liter, depending on the purchase volume.

Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria, confirmed this, stating, “They started pumping out diesel to marketers since last week… They are selling at N1,225/litre and the minimum volume they are giving is one million litres per marketer.”

Maigandi also expressed anticipation for the release of Premium Motor Spirit (PMS) by the refinery in May, further stating, “So we are expecting them to release PMS anytime from now.”

Dr. Ralph Arokoyo, Chief Executive of AF Ralph Oil and Gas Ventures, corroborated this information, affirming that the refinery had begun diesel sales to dealers the previous Wednesday. He noted, “The price ranges between N1,250/litre and N1,300/litre depending on the volume you are buying.”

Arokoyo also indicated optimism regarding future price reductions, stating, “Now you can get AGO (diesel) in some stations at N1,400/litre… Some are even doing N1,350/litre now, and I want to believe that in a couple of weeks to come, we should see more reduction in the price of the product.”

Regarding petrol availability, Arokoyo mentioned that the refinery informed dealers of its plans to release petrol into the market between the current period and May.