IPMAN Forecasts Lower Diesel Prices as Dangote Refinery Drives Costs Down

The Independent Petroleum Marketers Association of Nigeria (IPMAN) anticipates further reductions in diesel prices, with expectations that the Dangote refinery’s operations will drive prices down to approximately N700 per litre. This statement was made by IPMAN’s National Vice President, Hammed Fashola, who expressed appreciation for Dangote refinery’s initiative in lowering diesel prices from over N1,200 to N1,000.

In an interview, Fashola emphasized that there are high hopes for additional decreases in diesel prices, attributing this optimism to the strengthening of the naira against the dollar.

He highlighted that the current exchange rate, nearing N1,000 on the black market, is conducive to further price reductions.

Fashola explained that the local production of diesel by the Dangote refinery eliminates challenges associated with shipping, customs duties, and related factors, paving the way for potentially lower prices.

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He indicated that IPMAN members are hopeful that diesel prices could eventually reach around N700 per litre, which would be beneficial for consumers and the economy at large.

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“We all supported Dangote, we all prayed for him. We appreciate that the price is coming down, we still expect that the price will come down more and it will be affordable for citizens,” Fashola added.

Dangote refinery initiated diesel sales about two weeks ago, significantly reducing prices from N1,600/litre to N1,250/litre.

Last Tuesday, the refinery announced a further price reduction to N1,000/litre.

Economists and analysts have lauded this price reduction, anticipating positive effects on production costs, business activities, foreign exchange savings, and overall economic performance.

Femi Oladele, an economist, emphasized that lower production costs could stimulate economic activities and reduce inflation.

Jonathan Thomas of Sankore Investment Limited highlighted the impact of fuel prices on production costs and overall price levels, anticipating beneficial effects on the economy from the latest developments in diesel pricing.