Relief for manufacturers as Dangote further slashes diesel price to N1,000/litre

The Dangote Petroleum Refinery has again reduced the price of Automotive Gas Oil (LGO) popularly called diesel, from N1,200/litre to N1,000/litre.

The development which promises a considerable reprieve for manufacturers was announced in a statement issued on Tuesday by the Group’s spokesperson, Anthony Chiejina.

Recall that oil marketers last week called on the refinery to reduce its diesel price, urging managers of the facility to sell at N850/litre.

Manufacturers have been lament the high cost of diesel, which is used in generating power for their operations, noting that the product gulps about 80 percent of their profits.

Speaking on the plight of manufacturers against the backdrop of rising prices of their products, the Director General of MAN, Segun Ajayi-Kadir, said manufacturers should not be blamed for inflating prices of products, considering their high cost of production.

However, a bit of relief may have come the way of the manufacturers following the crash of the price of diesel by Dangote Refinery.

On the high cost of energy, Ajayi-Kadir stated: “We have at different fora informed government and relevant agencies of what to do to bring down these inimical worsening high operating costs in the country. Nigerians should not blame local manufacturers for increasing the cost of goods, because they are being confronted with debilitating conditions.

“Do you know that diesel is taking 80 per cent profit of surviving manufacturing firms in Nigeria currently at the rate of about N1,700?

“Which manufacturer can cope with that astronomical price for energy to produce and you won’t expect him to increase his products in the country?

“Also, look at the new Customs exchange rate, new interest rate, scarcity of foreign exchange (FX), NAFDAC ban and others. How do you want to cope in production and make profit?”

Chiejina’s statement read in part, “In an unprecedented move, Dangote Petroleum Refinery has announced a further reduction of the price of diesel from N1,200 to N1,000/litre.

“While rolling out the products, the refinery supplied at a substantially reduced price of N1,200/litre three weeks ago, representing over 30 per cent reduction from the previous market price of about N1,600/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.”