Dangote reduces petrol prices to align with market trends
Aliko Dangote, President of Dangote Industries Limited, shed light on the recent reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly called petrol, at the Dangote Refinery. The price was adjusted to ₦899.50 per litre at the refinery’s loading gantry, driven by prevailing market forces.
In an Arise TV documentary interview, Dangote reaffirmed his dedication to safeguarding the extensive investments of his multibillion-dollar enterprise. He remarked, “This price adjustment reflects market realities. We’ve invested over $20 billion in this refinery, and protecting our stake and investments is paramount.”
On December 19, 2024, the Dangote Refinery reduced its petrol ex-depot price from ₦970 to ₦899.50 per litre, a move that triggered competitive pricing across the downstream sector. Following this, the Nigerian National Petroleum Company Limited (NNPCL) also lowered its ex-depot price to ₦899 per litre. Furthermore, the refinery collaborated with MRS petrol stations to sell fuel nationwide at ₦935 per litre, garnering widespread approval from Nigerians.
Dangote emphasized the transformative role of the 650,000-barrels-per-day refinery, highlighting its potential to revolutionize Nigeria’s oil industry and economic landscape. He pointed out that the refinery would help alleviate foreign exchange pressures by reducing the need for imported petroleum products. “Currently, around 40% of foreign exchange demand is tied to importing petroleum products,” he explained. “Allowing more imports drains our reserves since most payments go to foreign suppliers.”
Responding to critics, Dangote stated, “Criticism is unavoidable, but it won’t deter our resolve. No one in Nigeria’s history has committed $20 billion to a single project in the past century. My decision to undertake this project stems from a sense of patriotism and a desire to leave a meaningful legacy.” He further noted, “If I had invested this amount in global tech giants like Google or Apple, the returns would have been significantly higher. But my commitment to Nigeria inspired this decision.”
Dangote also dismissed allegations that the NNPC had provided $1 billion in financial assistance to address liquidity issues, calling the claims “baseless and misleading.” He clarified that while the NNPC had initially proposed investing $1 billion in the refinery, the sum was negligible compared to the project’s $20 billion scope.
Devakumar Edwin, Vice President of Dangote Industries Ltd., revealed that the refinery is currently refining 350,000 barrels of crude oil daily, with plans to ramp up to its full capacity of 650,000 barrels per day. He assured that Nigeria’s crude oil production exceeds the refinery’s requirements, guaranteeing an uninterrupted supply.
