The Independent Petroleum Marketers Association of Nigeria says it is expecting that the Dangote refinery will reduce the price of its diesel further to say about N700 per litre.

Dangote began the sale of diesel about two weeks ago, crashing the cost of diesel from N1,600/litre to 1,250/litre

Last Tuesday, the refinery announced another price cut, saying the fuel would now be sold at N1,000/litre.

This price cut was applauded by President Tinubu as it is believed that production cost will drop significantly and should also affect the cost of products and services.

Mr Hammed Fashola (The National Vice President of IPMAN) while appreciating the Dangote refinery for reducing the price of diesel from over N1,200 to N1,000 maintained that the marketers have high expectations that the price of diesel would still go down.

According to Mr Hammed, the rebound of the naira against the dollar will bring about an appreciable reduction in the diesel price.

“It is a good development, a welcome development. That is what we expected. We are still expecting that diesel will still come down more. Because if you look at the dollar rate to the naira now, the currency is doing well against the dollar. The exchange rate now is almost N1,000 on the black market. We still expect that the dollar will come down more,” he stated

The IPMAN boss explained that the price would be reduced because the challenges of shipment, Customs duties and others have been removed since the product is being produced locally.

“When you look at the diesel being produced here, there are lots of factors that have come into play; like the issue of shipment, the issue of tax, Customs and others. All those are not there again. So, we marketers, we are expecting diesel to come to like N700 per litre; that is our prayer and at that level, it will be a blessing to everybody. That is what we are looking at. What we produce here must be quite different from what is imported. That is what we expected,” Fashola said.

He said further that, “We all supported Dangote, we all prayed for him. We appreciate that the price is coming down, we still expect that the price will come down more and it will be affordable for citizens.