The Independent Petroleum Marketers Association of Nigeria (IPMAN) anticipates a further reduction in diesel prices, with expectations that the Dangote refinery will push prices down to approximately N700 per litre.
National Vice President of IPMAN, Hammed Fashola, expressed this optimism while commending Dangote refinery for already lowering the price of diesel from over N1,200 to N1,000.
Fashola emphasized in an interview that they anticipate the price of diesel to continue its downward trend. He cited the strengthening of the naira against the dollar as a factor contributing to the potential reduction in diesel prices.
“It is a good development, a welcome development. That is what we expected. Even we are still expecting that diesel will still come down more. Because if you look at the dollar rate to the naira now, the currency is doing well against the dollar. The exchange rate now is almost N1,000 on the black market. We still expect that the dollar will come down more,” Fashola stated.
He further explained that local production eliminates challenges such as shipment costs and customs duties, which could further drive down the price of diesel.
“When you look at the diesel being produced here, there are lots of factors that have come to play; like the issue of shipment, the issue of tax, Customs and others. All those are not there again. So, we marketers, we are expecting diesel to come to like N700 per litre; that is our prayer and at that level, it will be a blessing to everybody. That is what we are looking at. What we produce here must be quite different from what is imported. That is what we expected,” Fashola explained.
He also emphasized the support and appreciation for Dangote’s efforts and expressed hopes for even more affordable prices in the future.
Dangote refinery initiated the diesel sale approximately two weeks ago, initially reducing the price from N1,600/litre to N1,250/litre, with a subsequent reduction to N1,000/litre announced last Tuesday.
Economic analysts foresee several benefits from the reduction in diesel prices, including significant drops in production costs, potential resurfacing of businesses previously shut down due to high costs, and increased economic activities leading to a drop in inflation.
Additionally, savings in foreign exchange could bolster the nation’s reserves, contributing to overall economic stability.