By Anwuli Oseloka
Less than two weeks ago, Dangote Petroleum Refinery announced a reduction in the price of diesel from N1200 to N1,000/litre. Furthermore, on Tuesday, the refinery announced a further reduction in the prices of diesel to N940/litre.
However, the new price reduction according to a statement issued by the firm’s spokesperson, Anthony Chiejina firm stated “The price change of N940 applies to customers buying five million litres and above from the refinery, while the price of N970 is for customers buying one million litres and above”.
Despite the reduction in price, many fuel stations seem to linger on the sidelines, reluctant to adjust their prices to reflect the downward trend. Investigations carried out by IkejaBird shows a current trend of sales between N1200/litre to N1500/litre among various fuel stations.
A bus driver said, “The price reduction is a plus for us but we still buy diesel at the old price. We felt with the double cut down in price we would see an instant change in price but its yet to take effect, we just hope it won’t be just talk without action.”
According to a fuel attendant, “We are selling off the old stock we bought at a higher price first before we buy new stock and reduce the price because if we reduce the price and sell we would run at a loss because we bought it at a high price.”
A diesel buyer who asked to be anonymous said, “Diesel has not come down at all, I have been buying in different stations, the last one I bought was 1400/litre but here they are selling it 1300/litre which is quite better than where I bought last. Another said “there should be a body to monitor this process so we don’t bear the burden still. How long do they want to maintain the old price? What is the assurance that when the old stock finishes the new price would be adopted? What if the fuel stations claim they are still selling old stock whereas they have bought new stock? Who do we report to?”
The National President, Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi explained, “The price reduction by Dangote refinery will not reflect at the pumps immediately because he started selling at the rate of N1,225/litre. Many marketers bought at that price and are still selling that stock. So, there is no way they can be able to reduce the price to below their cost price. But with time, the price of the product at the filling stations will reduce and normalize.”
The delay of fuel stations to promptly implement reductions in diesel prices burdens consumers with higher fuel costs. It also carries broader negative implications for economic stability, competitiveness, and public trust. Timely and transparent price adjustments are essential to ensure that the benefits of reduced diesel prices are equitably distributed and contribute to overall economic well-being of citizens across the country.
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