Diesel Prices Yet To Drop Despite Dangote’s Price Cut
Despite Dangote Industries’ notable price reduction on diesel, many Nigerians continue to struggle with the high cost of the fuel essential for powering generators, trucks, and machinery.
The reduction, which set the price at N940 per litre for bulk purchases of five million litres and above, has yet to be reflected at retail outlets, causing frustration among consumers and businesses alike.
In Lagos, artisans, traders, and commuters who rely on diesel-powered buses expressed their grievances. Ngozi Uzordike, a local baker, highlighted the impact on her business.
“The price of diesel has been a nightmare. I have had to cut back on production, affecting my sales and the availability of customer favourites,” she explained to BusinessDay.
Similarly, Emeka Okafor, who runs a consulting firm in Lagos, voiced his frustration over the ineffective price cut. “Dangote announces a price cut, but the prices at the pumps remain unchanged. The high cost of diesel has forced me to raise my service fees, adding strain on my clients,” Okafor said.
Retailers appear reluctant to lower prices, possibly due to existing stock purchased at higher rates. Concerns also linger about potential supply chain issues or hidden costs that might negate the price reduction.
Despite Dangote Petroleum Refinery’s further announcement of reduced prices for diesel and aviation fuel to N940/litre and N980/litre respectively, filling stations across various parts of Nigeria are selling diesel at rates ranging from N1,350/litre to N1,450/litre.
A survey of fuel stations along the Ijegun axis in Lagos revealed prices hovering around N1,350/litre, even at outlets such as Mobil along Isheri Ijegun road and a Nigerian National Petroleum Company Limited station on Egbeda-Idimu road.
When questioned about the disparity in prices, Abubakar Maigandi, the national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained that the delay in reflecting the new prices was due to dealers having old stock purchased at N1,225/litre.
“The price reduction by Dangote refinery will not immediately reflect at the pumps. Many marketers are still selling off stock bought at higher prices,” Maigandi noted.
He assured that with time, the prices at filling stations would gradually decrease and normalize.
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