Financial expert Bismark Rewane has forecasted a significant drop in diesel prices in Nigeria and predicted that they could plummet below N1,000 per litre with the commencement of diesel production at the Dangote Refinery.
Speaking on Channels Television’s News At 10, Rewane highlighted the potential impact of the refinery’s operations on the fuel market.
Currently priced at N1,500 per litre on the retail side, diesel plays a crucial role in various sectors, particularly in powering equipment for industries like baking and cement manufacturing.
With Dangote Refinery beginning to supply diesel into the market at around N1,100 per litre, Rewane foresees a substantial reduction in diesel prices, which could have a ripple effect on inflation rates.
The expected decrease in diesel prices is anticipated to bring relief to businesses reliant on diesel-powered machinery, such as bakers and cement manufacturers.
Rewane explained that the downward pressure on diesel prices could contribute significantly to lowering inflation rates in the country.
Furthermore, Rewane noted the impact of exchange rate fluctuations on inflation, highlighting that the recent appreciation of the Naira against the Dollar could further alleviate inflationary pressures.
He explained that while price reductions may occur, they are likely to be gradual due to the sticky nature of prices in economic downturns.
Overall, Rewane’s predictions suggest a positive outlook for the Nigerian fuel market, with the potential for lower diesel prices contributing to broader economic stabilization and improved business conditions.