Nigerian billionaire Aliko Dangote, owner of the $20 billion Dangote Refinery, has shed light on the recent drop in fuel prices across Nigeria, following a year of steady increases.
Speaking on Arise TV, Dangote emphasized that the price reduction was driven by market dynamics rather than any deliberate effort by marketers to provide festive season relief.
Dangote explained, “The price reduction is a response to the market, let me just put it that way. It is a refinery where we invested over $20 billion, and I think we have to protect our interests and investments.”
On December 19, the Dangote Refinery reduced its ex-depot price of Premium Motor Spirit (PMS) to N899.50 per liter, sparking fierce pricing competition in the downstream industry.
This prompted the Nigerian National Petroleum Company Limited (NNPCL) to lower its own ex-depot price to N899 per liter.
Adding to Nigerians’ delight, the Dangote Refinery partnered with MRS fuel stations to sell petrol at N935 per liter at retail outlets nationwide.
This move brought some relief to consumers, especially during the Yuletide season characterized by heavy travel and increased transportation costs.
During the interview, Dangote highlighted the significant impact of petroleum imports on Nigeria’s foreign exchange reserves.
He noted, “Forty percent of our demand on foreign exchange comes from people dealing in petroleum products.
The more we allow imports, the more we deplete our foreign reserves, as letters of credit are issued for products that don’t benefit the local economy.”
To ease transportation costs during the festive season, the Dangote Refinery announced a special holiday discount for PMS. Anthony Chiejina, the Group Chief Branding and Communications Officer for Dangote Group, said, “From today, our petrol will be available at N899.50 per liter at our truck loading gantry or Single Point Mooring (SPM).”
Additionally, customers purchasing fuel on a cash basis were offered the option to buy an additional liter on credit, backed by guarantees from Access Bank, First Bank, or Zenith Bank.
The Dangote Refinery, the largest single-train refinery in the world with a production capacity of 650,000 barrels per day, has the potential to meet Nigeria’s domestic demand for refined petroleum products and generate surplus for export.
This recent pricing adjustment not only underscores the refinery’s role in Nigeria’s energy sector but also highlights its commitment to balancing profitability with easing the burden on consumers during critical periods.
