Nigerians to see cheaper fuel soon, thanks to Dangote refinery – Analyst

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Nigerians can anticipate a downward reduction in petrol pump prices in the coming weeks, largely due to the increasing impact and strategic operations of the Dangote Refinery.

This projection comes from an analyst and Head, Investment Research at Comercio Partners Limited, Ifeayi Ubah, interviewed on ARISE TV on Saturday, highlighting a significant shift in Nigeria’s energy landscape.

The analyst emphasised that the Dangote Refinery’s recent price adjustments are a direct response to international market trends.

“For the Dangote Refineries slashing prices, he’s just following what the international prices are. So, we saw the international prices go down the time Danger Day slashed prices,” Ubah said in the interview.

This positive outlook is rooted in Nigeria’s evolving position within the global petroleum market. The nation is gradually transitioning from being heavily reliant on imported finished products to becoming a prominent exporter.

The strategic shift is expected to significantly reduce the drain on Nigeria’s foreign exchange reserves, which previously went towards fuel imports. The interview also hinted at another refinery, Buharabi, being established in the South-South region, which could further boost domestic supply and potentially lead to a surplus of petroleum products.

While acknowledging the inherent volatility in global energy prices, the analyst, Ubah, stressed that the long-term impact of local refining capacity would override temporary fluctuations.

This positive outlook is rooted in Nigeria’s evolving position within the global petroleum market. The nation is gradually transitioning from being heavily reliant on imported finished products to becoming a prominent exporter.

The strategic shift is expected to significantly reduce the drain on Nigeria’s foreign exchange reserves, which previously went towards fuel imports. The interview also hinted at another refinery, Buharabi, being established in the South-South region, which could further boost domestic supply and potentially lead to a surplus of petroleum products.

While acknowledging the inherent volatility in global energy prices, the analyst, Ubah, stressed that the long-term impact of local refining capacity would override temporary fluctuations.