Reducing the diesel price to N1,200 will decrease Nigeria’s inflation rate, says Dangote

Reduce Diesel Price-Dangote. Dangote Group Chairman, Alhaji Aliko Dangote, mentioned during a briefing with journalists after paying homage to President Bola Tinubu for Eid-el-Fitr in Lagos that slashing the diesel price to N1,200 would positively impact inflation in Nigeria.

He emphasized that recent economic advancements indicate the country is moving in the right direction. Reduce Diesel Price-Dangote.

Dangote added that his refinery is providing diesel at N1,200, which is below the market rate of N1,650, and he anticipates this move will help reduce inflation in the nation.

“I believe that we are on the right track. I believe Nigerians have been patient and I also believe that a lot of goodies will now come through. There’s quite a lot of improvement because if you look at it, one of the major issues that we’ve had was the naira devaluation that has gone very aggressively up to about N1,900.
“But right now, we’re back to almost N1,250, N1,300, which is a good reprieve. Quite a lot of commodities went up. When you go to the market, for example, something that we produce locally like flour, people will charge you more. Why? Because they’re paying very high diesel prices.
“Now, in our refinery, we started selling diesel at about N1,200 instead of N1,650 and I’m sure as we go along, things will continue to improve quite a lot.
“If you look at it now, when you are buying N1,650 or N1,700 for a litre of diesel, and that one has been cut off by almost two-thirds, you are now paying N1,200 for diesel.
“This can help to bring inflation down immediately. And I’m sure when the inflation figures are out for the next month, you’ll see that there’s quite a lot of improvement in the inflation rate,” Dangote said.

Here’s what you should know:

1. High Inflation Rate: Nigeria’s inflation rate is currently at a concerning level, standing at 31.70% as of February 2024, as reported by the National Bureau of Statistics (NBS). This high inflation is primarily attributed to increasing food prices and the removal of petrol subsidy by President Bola Tinubu in May 2023.

2. Monetary Measures: To combat inflationary pressures, the Central Bank of Nigeria (CBN) has implemented several monetary measures. These include raising the Monetary Policy Rate (MPR), which is the benchmark interest rate, to 24.75%, the highest in decades.

3. Dangote Refinery’s Role: The newly launched Dangote refinery has commenced distribution of diesel and aviation jet fuel to domestic marketers within the country. This move is expected to have a positive impact on inflation and reduce Nigeria’s reliance on imported petroleum products.

4. Price Reduction: Alhaji Aliko Dangote has announced a reduction in the price of diesel from N1,650 to N1,200. This price cut is anticipated to lower the overall cost of goods and services in the country, providing relief to consumers and businesses alike.

Overall, the reduction in diesel prices by Dangote Refinery presents a promising step towards addressing Nigeria’s inflation challenges and reducing dependence on imported petroleum products.