Dangote refinery slashes fuel pump cost to N1,200 per litre

By Udeme Akpan

The Dangote Petroleum Refinery & Petrochemicals has reduced its gantry price for Premium Motor Spirit (PMS), also known as petrol, to N1,200 per litre from over N1,270 per litre.

The spokesperson for the Dangote Group, Anthony Chiejina, said the adjustment represents a downward review of the refinery’s pricing template, driven by developments in the global oil market.

He said: “Dangote Petroleum Refinery & Petrochemicals has reduced its gantry price for petrol to N1,200 per litre and its coastal price to N1,153 per litre. This move comes amid ongoing tensions in the Middle East, which continue to influence global oil markets.

“The adjustment marks a downward review in the refinery’s pricing structure and is expected to impact fuel supply costs across distribution channels, including depots and retail outlets.”

He added that the coastal price of N1,153 per litre is expected to affect marine deliveries to depots in the southern part of Nigeria.

Recently, the Chief Executive Officer of Dangote Petroleum Refinery, David Bird, highlighted challenges affecting operations, particularly inadequate crude oil supply.

According to him, the refinery is designed to receive between 13 and 15 cargoes per month, but current deliveries fall short of this requirement, significantly impacting operations.

He further noted that the gap between crude purchase prices and prevailing premiums represents revenue losses to international traders rather than Nigeria.

“That value between the purchase price and the premium we’re now seeing is money Nigeria is leaking to the international trading community,” he said.

Clarifying the controversial crude-for-naira policy, Bird said the initiative is often misunderstood.

“Crude-for-naira is not designed to benefit Dangote Refinery. It is intended to provide resilience to foreign exchange. It is in the country’s interest to process domestic crude in local currency.”

Despite the supply constraints, he maintained that the refinery is operating at full capacity, supplying both domestic and regional markets.