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HomeBusinessIPMAN forecasts further diesel price drop to N700/liter with Dangote Refinery supply

IPMAN forecasts further diesel price drop to N700/liter with Dangote Refinery supply

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) anticipates a significant reduction in diesel prices, with expectations that the Dangote refinery will drive prices down to approximately N700 per liter.

This projection follows the refinery’s recent reduction of diesel prices from over N1,200 to N1,000.

Hammed Fashola, National Vice President of IPMAN, expressed optimism during an interview, citing the strengthening of the naira against the dollar as a key factor contributing to the expected price decline.

He emphasized that with the removal of challenges such as shipment and customs duties, coupled with local production, diesel prices are poised to decrease further.

Fashola highlighted the industry’s support for Dangote and underscored the importance of making diesel affordable for citizens.

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The recent reduction in diesel prices by Dangote, from N1,600 to N1,250 per liter, has already garnered positive feedback from analysts.

Economist Femi Oladele welcomed the price cut, predicting significant drops in production costs and a potential resurgence of businesses previously affected by high fuel prices.

He also noted the positive impact on foreign exchange savings, which could bolster the nation’s reserves.

An analyst at Sankore Investment Limited, Jonathan Thomas emphasized the broader economic implications of fuel prices, citing their influence on the general price level of goods and services.

He expects the latest developments to impact the total cost of production positively, leading to increased economic activities and a potential drop in inflation.

As stakeholders monitor these developments, the forecasted drop in diesel prices signals promising prospects for both businesses and consumers, contributing to economic growth and stability in Nigeria.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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