Dangote refinery to reduce dependency on imported petrol by May

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There are signs that Nigeria’s reliance on imported petrol will decrease significantly as the $20 billion Dangote Refinery plans to commence supplying petrol to the domestic market starting from May 2024. Before the refinery, with a capacity of 650,000 barrels per day, comes fully online, Nigeria has relied almost entirely on imported petrol to meet its demand.

According to information from Dangote Refinery, once operating at full capacity, the facility will produce 99 million liters (26.2 million gallons) of gasoline, diesel, jet fuel, and kerosene daily. Already, the price of diesel, known as Automotive Gas Oil (AGO), has dropped by 20.6% to N1,350 per liter in April 2024, down from N1,700 per liter in March 2024, as the refinery increases its supplies to the market.

This reduction in petrol import dependency and the subsequent drop in diesel prices is seen as a positive development, especially amid Nigeria’s inflation and foreign exchange challenges. The awareness that Dangote Petroleum Refinery has set its price at N1,225 per liter has contributed to the decline in diesel prices across the nation. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), welcomed the news, highlighting its significance for the economy.

Source: Vanguard

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