By Modupe Gbadeyanka
The pump price of Automotive Gas Oil (AGO), otherwise known as diesel, has been brought down to N1,000 per litre, thanks to Dangote Petroleum Refinery, Lagos.
The oil facility, owned by Africa’s richest man, Mr Aliko Dangote, crashed the price of the product after commencing the loading of diesel by road this week.
Before now, diesel was selling at a few fuelling stations at N1,200 per litre but information reaching Business Post has it that it has come down to N1,000 per litre.
While rolling out the products, the refinery supplied at a substantially reduced price of N1,200 per litre three weeks ago, representing over 30 per cent reduction from the previous market price of about N1,600 per litre.
This significant reduction in the price of diesel, at Dangote Petroleum Refinery, is expected to positively affect all the spheres of the economy and ultimately reduce the high inflation rate in the country.
In May 2023, former President Muhammadu Buhari commissioned the Dangote Refinery believed to have gulped about $20 billion.
The facility has the capacity to refine 650,000 barrels of crude oil per day. The refinery has been touted to help revamp the Nigerian economy, as it is capacity to meeting local demand.
Nigeria, which is one of the largest crude oil producers in the world, does not have a working refinery owned by the government. The country imports premium motor spirit (PMS), commonly known as petrol, for the consumption of its citizens.
The Dangote Refinery is reportedly posed to commence the supply of petrol to the local market from next month after starting with diesel this month.