Aliko Dangote recently spoke about the direct impact of reducing the price of diesel on Nigeria’s economy. The business leader, whose refinery has just started producing diesel, explained how this price drop could help lower inflation. He also pointed out positive signs in the economy, like the naira’s strength against other currencies.

Alhaji Aliko Dangote, Chairman of the Dangote Group, expressed confidence that slashing diesel costs by one-third to N1,200 per litre would contribute to reducing inflation. Dangote shared his thoughts with reporters during his Eid-el-Fitr visit to President Bola Tinubu’s home in Lagos.

It’s worth noting that the Dangote Refinery recently began supplying petroleum products, including diesel and aviation fuel, to the local market.

Reducing Diesel Prices to Fight Inflation

Dangote emphasized that his refinery had been selling diesel for N1,200 per litre, a significant drop from the previous market price range of N1,650-N1,700.

He said:

“There’s quite a lot of improvement because if you look at it, one of the major issues that we’ve had was the Naira devaluation that has gone very aggressively up to about N1,900. But right now we’re back to almost N1,250, N1,300, which is a good reprieve.

“Why? Because they’re paying very high prices on diesel and what we did, for example, in our refinery, we started selling diesel at about N1,200 for N1,650 and I’m sure as we go along, things will continue to improve quite a lot.”

Dangote Stresses Lower Diesel Prices Can Quickly Reduce Inflation

Dangote emphasized, as reported by The Nation, that lower diesel prices have the potential to swiftly decrease inflation. February Inflation Headline Rises to 31.70%

In February, according to the National Bureau of Statistics, the inflation rate surged to 31.70%, up from January 2024’s figure of 29.90%. Aliko Dangote expressed confidence that with the release of next month’s inflation figures, there would be a noticeable improvement in the inflation rate.

Naira Value Shows Significant Improvement

Dangote also spoke optimistically about the economy’s direction, pointing to a significant improvement in the naira exchange rate, which had dropped from around N1,900 per dollar to N1,250-N1,300. He stated, “There’s quite a lot of improvement because if you look at it, one of the major issues that we’ve had was the Naira devaluation that had gone very aggressively up to about N1,900. But right now, we’re back to almost N1,250 and N1,300, which is a good reprieve.”

He emphasized that these developments were already bringing positive outcomes, such as lower prices for domestically produced goods like flour, as businesses benefited from reduced diesel fuel expenses.

Oil Marketers Urge Lower Diesel Prices

In related news, reports indicate that oil marketers in Nigeria are urging Dangote Petroleum Refinery to reduce its diesel prices. They argue that the current rates of N1,225 and N1,300 are too high to maintain profitability, especially considering the refinery’s location in Nigeria and the recent strengthening of the naira against the US dollar. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has proposed a price range of N700 to N850 per litre for Dangote diesel.

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