Dangote Diesel Reaches N1,100/litre As Naira Continues Downward Spiral

Dangote Diesel Reaches N1,100/litre As Naira Continues Downward Spiral....KINDLY READ THE FULL STORY HERE▶

The Dangote Petroleum Refinery has announced a significant increase in the price of Automotive Gas Oil (diesel) from N940/litre to N1,100/litre, citing the depreciation of the Nigerian naira against the United States dollar. This latest adjustment marks a sharp reversal from previous price reductions reported by The PUNCH on April 24, 2024, when the refinery had lowered diesel prices to N940/litre, and on April 17, when it had reduced prices from N1,200/litre to N1,000/litre.

Reports reveal that this recent hike in diesel prices comes amidst a downward trend in the value of the naira relative to the dollar, prompting concerns among oil marketers. The National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, acknowledged the refinery’s earlier reduction in diesel prices but noted a subsequent increase to N1,100/litre, possibly due to the fluctuating exchange rate.

While officials of the refinery declined to comment on the matter, industry sources and major marketers corroborated the news of the price adjustment. Chief Ukadike Chinedu, the National Public Relations Officer of IPMAN, attributed the rise in diesel prices to the recent depreciation of the naira against the dollar, emphasizing that the refinery’s reliance on imported crude oil, priced in dollars, exacerbates the impact of currency fluctuations on refined product prices.

The volatility in the foreign exchange market, with the naira depreciating against the dollar, has raised concerns about the broader economic implications, particularly on the cost of essential commodities. This development represents a stark contrast to the slight appreciation of the naira witnessed in March and April, as reported by The PUNCH, underscoring the vulnerability of domestic prices to external economic factors

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