Ever since the 650,000 barrels per day (BPD) Dangote oil refinery started dispensing automotive gas oil (also diesel) to marketers last week, there have been reports of speedy reduction in the pricing of the fuel.

Before the plant started releasing the diesel specifically on Wednesday, 27 March, the filling stations all over Nigeria were selling at the cost of ₦1700 for a litre but that has now changed. The marketers whose role it is to transport the product from the refining company to the pump are confirming a reduction in the buying rate.

Now, they get diesel for ₦1225 which is a huge difference from the former strenuous pricing regime. With time, it is expected to have an all-around effect on the retail price that makes life a bit easier for businesses needing regular energy supply to run their offices and the households expecting food from the farms.

Over at the Dangote refinery, the interested distributors are getting ration for the product they are buying. One million litres is the minimum and the rate is okay considering what other major tank farms are selling, says oil marketer, Dr Ralph Arokoyo who is also the Chief Executive, AF Ralph Oil and Gas Ventures.

Talking to a Punch News correspondent, he said that the diesel price his associates have been getting from the refinery ranges between ₦1,250/litre and ₦1,300/litre depending on the volume you are buying. This is good news for Nigerians because in the last few weeks, the price of diesel hovered between ₦1,600 and ₦1,700/litre.

But in many locations across the federation, the prices are beginning to drop due to the emergence of products from that refinery and as the products have been dispatched since last Wednesday. Now you can get AGO (diesel) in some stations at ₦1,400/litre.

Some are even doing ₦1,350/litre now and I want to believe that in a couple of weeks to come, we should see more reduction in the price of the product as more products from the plant hit the market and spread very well across the country.

There is more to expect from the Dangote refinery which earlier experienced up to three postponements surrounding when it would start producing its crude oil goods. Next for the petrochemical plant is to start churning out premium motor spirit (petrol) which is more commonly used.

ALSO READ: When will production finally begin at Dangote oil refinery?

With the electricity supply only getting worse, households need cheaper variants to keep the ice coming into their refrigerators and so would commercial rides be able to offer fairer rides to their passengers. A lot of value is attached to the refinery moving on to produce PMS for the first time.

By estimation, releasing petrol to the marketers would happen between April and the following month. For months, Nigerians have asked openly for a visible notice that their president Bola Tinubu has been working. Now it looks like they are getting one.

Ayodele Johnson

Ayodelé is a Lagos-based journalist and the Content and Editorial Coordinator at Meiza. All around the megacity, I am steering diverse lifestyle magazine audiences with ingenious hacks and insights that spur fast, informed decisions in their busy lives.