Diesel and aviation fuel prices are yet to budge in Nigeria after the recent price cut by the Dangote Refinery owned by Africa’s richest man.
The mega refinery, backed by Aliko Dangote, announced price cuts to diesel and aviation fuel prices Tuesday, but the market price of both products have stayed the same since then with marketers claiming they were still offloading old stock.
The delay is frustrating several businesses, including airlines, that can’t wait to buy the products at a cheaper rate.
Emeka Okafor, who runs a consulting firm in Lagos and relies on diesel generators due to persistent power outages, shared his frustration.
“Dangote announced a price cut, but when I ask my people to buy diesel, the price is still the same. How can we survive like this?” he asked.
Okafor explained that the high cost of diesel has forced him to raise his service fees, putting a strain on his customers’ wallets as well.
“The reasons behind the slow trickle-down effect are unclear. Some speculate that retailers are waiting to exhaust their existing stock bought at higher prices before offering the discounted rate,” Abubakar Lawal, a diesel truck driver who operates at independent marketers’ depot facilities at the Apapa terminal said.
High diesel prices
A survey by BusinessDay showed diesel was selling at an average rate of between N1,350/litre and N1,450/litre despite the price cut by the Dangote refinery.
In some fuel stations along the Ijegun axis of Lagos State, it was observed that the product sold for N1,350/litre.
An outlet belonging to Mobil along Isheri Ijegun road in Alimosho area of Lagos State sold the product for N1,350/litre.
A filling station of the Nigerian National Petroleum Company Limited along Egbeda-Idimu road also dispensed diesel at N1,350/litre on Wednesday.
TotalEnergies filling station at Isolo road also sold diesel at N1,350 while NNPC Ltd at Ikoyi Road sold diesel for N1,300.
