Ahead of Christmas, Nigerians were recently greeted with a significant drop in the price of Premium Motor Spirit (PMS), popularly known as petrol, at the Dangote Refinery. The new ex- depot price of ₦899. 50 per litre has sparked curiosity and discussions nationwide. Aliko Dangote, the President of Dangote Industries Limited, has now revealed the reasons behind this decision.....Click Here To Read Full Article >>
In a recent interview, Dangote explained that the price reduction was primarily driven by market forces and the need to maintain a competitive edge in the downstream petroleum sector. He stated, ” The price reduction is a response to the market. It’ s a refinery where we invested over $20 billion, and we must protect both our interests and investments. ”
This strategic move has triggered intense competition in the market, with the Nigerian National Petroleum Company Limited (NNPCL) following suit by reducing its ex- depot price to ₦899 per litre. Additionally, Dangote Refinery partnered with MRS Petrol stations to sell petrol at retail outlets nationwide for ₦935 per litre, bringing some relief to consumers.
Beyond pricing, Dangote emphasized the broader implications of his refinery on Nigeria’ s economy. According to him, importing petroleum products exerts immense pressure on the country’ s foreign exchange reserves. He highlighted that nearly 40% of Nigeria’ s forex demand stems from petroleum imports, a situation his refinery aims to address.
He also dismissed rumors about financial support from the NNPC, calling the claims ” nasty” and ” untrue. ” Dangote clarified that NNPC’ s $1 billion investment in the refinery was insignificant compared to the project’ s $20 billion valuation.
Despite criticisms and challenges, Dangote underscored his patriotic motivation for embarking on such an ambitious project. ” I would rather leave a legacy behind. I’ m not a rich man; I’ m a wealthy man, and wealthy people create work for others, ” he stated passionately.
Currently, the refinery operates at 350, 000 barrels of crude oil per day, with plans to scale up to its full capacity of 650, 000 barrels. Dangote remains optimistic, reiterating that the refinery will not only transform Nigeria’ s oil sector but also reduce reliance on imports, ensuring long- term economic stability.
This move has undoubtedly reshaped Nigeria’ s petroleum landscape, setting the stage for a more competitive and self- reliant future.
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