Afrigather The worth of diesel from Dangote refinery has surged from N940 to N1,100 per litre because of the naira’s current depreciation towards the US greenback, sources revealed on Tuesday.
This comes after the refinery introduced a discount in diesel and aviation gasoline costs to N940 and N980 per litre, respectively, on April 24, 2024.
This discount adopted a earlier drop from N1,200 to N1,000 per litre in response to appeals from oil entrepreneurs, as reported by Business Elites Africa.
In a subsequent adjustment, the refinery supplied additional worth cuts for bulk consumers buying 5 million litres or extra.
Nonetheless, on Tuesday, it was confirmed that the value of diesel has now climbed to N1,100 per litre. Sellers buying smaller volumes are reportedly paying as much as N1,200 per litre.
Oil entrepreneurs attribute the value hike to the weakening of the naira towards the greenback. Abubakar Maigandi, Nationwide President of the Unbiased Petroleum Entrepreneurs Affiliation of Nigeria (IPMAN), confirmed the rise, stating,
“The refinery had diminished the value to N940 per litre, however it lately went as much as N1,100 per litre because of the rising trade price.”
Though Dangote refinery officers didn’t touch upon the state of affairs, business insiders and main entrepreneurs corroborated the value enhance.
Chief Ukadike Chinedu, Nationwide Public Relations Officer of IPMAN, defined that the devaluation of the naira instantly impacts the price of imported crude oil, which is priced in {dollars}.
“The current rise within the international trade price goes to have an effect on the costs of refined merchandise from the plant,” Chinedu famous
Future Implications for the Dangote Refinery
Earlier this 12 months, the naira had proven indicators of strengthening towards the greenback, positively influencing commodity costs.
On April 16, 2024, the naira appreciated to N1,136/$ within the official market and N1,050/$ within the parallel market.
Nonetheless, the present depreciation has reversed these beneficial properties, resulting in elevated diesel costs from the Dangote refinery.
The multi-billion-dollar facility in Epe, Lagos, valued at $22 billion, now faces the problem of adjusting to the fluctuating trade charges, with vital implications for diesel pricing and provide in Nigeria.
