Market News

• Diesel lowered to 940 naira, aviation fuel cut to 980 naira
• Refinery still readying units to begin gasoline production

(Bloomberg) -- Nigeria’s new mega refinery said it’s cutting the prices of diesel and aviation fuel in the domestic market, the third time since it started delivering the products in March.

Dangote Industries Ltd.’s refinery will reduce diesel by 6% to 940 naira ($0.76) per liter, while aviation fuel will sell for 980 naira, it said in an emailed statement. The prices apply to marketers buying more than 5 million liters, it said. 

Nigeria’s insufficient power supply means that big businesses mostly rely on diesel-powered generators for electricity, which retailed for as much 1,600 naira at the beginning of March. Until Dangote entered the market in March, the country had to import the vast majority of its refined fuel. The company started selling fuel at 1,200 naira per liter last month, reducing the price to 1,000 naira two weeks ago.

Read more: Nigeria’s Dangote Oil Refinery Ramps Up Production With US Crude

“The new price is in consonance with the company’s commitment to cushion the effect of economic hardship in Nigeria,” Dangote Group spokesman Anthony Chiejina said.

The 650,000 barrel-a-day Dangote plant outside Lagos is readying two units to enable gasoline output that will transform the fuel market both in Nigeria and the region, according to analysts.

The refinery is running at about 300,000 barrels a day, nearly half its nameplate capacity, and has started shipping jet fuel, gasoil and naphtha as it widens to a full slate of products.