President Tinubu Commends Dangote Refinery For Crashing Diesel Price

President Tinubu has commended the Dangote Refinery for crashing diesel price in Nigeria.

 

NewsOnline Nigeria reports that President Bola Tinubu has commended Dangote Oil and Gas Limited for slashing the wholesale cost of the Automotive Gas Oil (AGO), also known as diesel, from its refinery.

This Nigeria news platform recalls that Dangote Petroleum Refinery had on Tuesday announced a reduction in the cost of AGO pump price from N1,200 to N1,000 per liter, making it the second reduction in three weeks, having dropped the initial price of N1,600 to N1,200.

 

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However, reacting to the new development in a statement issued by his Special Adviser on Media and Publicity, Ajuri Ngelale, President Tinubu said the price review by Dangote Petroleum Refinery, which represents a 60 per cent drop, will impact the prices of sundry goods and services.

He also called on Nigerians and businesses to make the nation their priority, assuring that his administration is committed to guaranteeing a conducive, safe, and secure environment to thrive.

 

“President Bola Tinubu commends the enterprising feat of Dangote Oil and Gas Limited in reducing the gantry price of Automotive Gas Oil (AGO), also known as diesel.

“The Group recently reviewed downwards the gantry price of AGO from N1,650 to N1,000 per litre for a minimum of one million litres of the product, as well as providing a discount of N30 per litre for an offtake of five million litres and above.

 

“The price review represents a 60 percent drop, which will, in no small measure, impact the prices of sundry goods and services.

 

“The President affirms that Nigerians and domestic businesses are the nation’s surest transport and security to that glorious destiny of economic prosperity, noting the federal government’s 20 percent stake in Dangote Refinery and why such partnerships between public and private entities are essential to advancing the overall well-being of the country.

 

“The President calls on Nigerians and businesses to, at this time, put the nation in priority gear while assuring them of a conducive, safe, and secure environment to thrive”, the statement said.

 

Meanwhile, a Reuters report yesterday said Aliko Dangote has hired a crude oil manager to run a London trading office being established to manage crude and fuel deals for his refinery.

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According to Reuters, Graham Campbell has been hired as the team’s crude oil manager, and he is expected to start in the next few months.

 

Campbell, who is at British oil firm Prax, would be joined by a senior refined products trader as well as a senior tanker charterer, and a risk and derivatives trader. The traders will be based in London and report to Radha Mohan who joined Dangote in 2021 from Indian refiner Essar. Campbell also worked at Essar before his stint at prax.

 

The world’s biggest oil traders and state firms have been vying for supply and pre-finance deals but so far, Dangote has not signed any long-term contracts. Instead, he wants to set up his own team.

However, he has done small financing deals with Vitol and Trafigura to cover some of his operational costs. The 650,000 barrels per day refinery was built at a cost of about $20 billion.

 

The refinery is also procuring several cargoes per month of Nigerian crude from Nigerian National Petroleum Company Limited (NNPC) which has a stake in the plant and secured U.S.-grade WTI cargoes from the spot market.

 

The started operations and its first products were sold in February. The plant has sold cargoes of straight-run fuel oil, diesel and naphtha so far.

Gasoline production is expected to start by the middle of the year.