Why Petrol Price Dropped To ₦899.50 Per Litre – Dangote

The President of Dangote Industries Limited, Aliko Dangote, has explained that the recent reduction in the price of Premium Motor Spirit (PMS), or petrol, to ₦899.50 per litre at the company’s loading gantry, was a direct result of prevailing market forces.

Dangote emphasized his commitment to safeguarding the interests and investments of the multi-billion-dollar company, stating, “The price reduction is a response to the market, let me just put it that way. It is a refinery where we invested over $20bn and I think we have to try and protect our interests and also our investments.”

These comments were made during an interview in an Arise TV documentary published on YouTube on Wednesday.

Competitive Market Shifts

On December 19, 2024, Dangote Refinery reduced its ex-depot petrol price from ₦970 to ₦899.50 per litre.

This move triggered significant competition in the downstream sector, prompting the Nigerian National Petroleum Company Limited (NNPCL) to lower its ex-depot price to ₦899 per litre.

Additionally, Dangote Refinery partnered with MRS Petrol Station to sell petrol at ₦935 per litre at its retail outlets nationwide, a decision that has received widespread public approval.

Refinery’s Impact on Nigeria

Dangote highlighted the refinery’s transformative potential, noting its capacity of 650,000 barrels per day and its ability to revamp Nigeria’s oil sector and economy.

He stressed that petroleum imports significantly strain the country’s foreign exchange reserves.

“40 per cent of our demand on foreign exchange is through people dealing in petroleum products and the more we allow imports to come in, not because I do not want imports, but the more we allow imports to come in, the more we keep using most of our foreign exchange out of the country because the majority of those letters of credit open for petroleum products and the goods are not coming into Nigeria.

“There is nothing you would do that you won’t get criticism for. But I think we cannot also control people from speaking their minds,” he explained.

Despite criticisms, Dangote affirmed his resolve to continue the project: “In the last 100 years, no one in Nigeria has invested $20 billion in a single project. Criticism will not stop us from continuing with what we are doing.

“I did this project because of my love for my country and to make sure that I have a legacy project. If I invested this money in Google or Apple, my investment would be more, and I wouldn’t be having the headache that I’m having today.

“So, I think it is patriotism that made me do this. I would rather leave a legacy behind. I’m not a rich man. I’m a wealthy man. And wealthy people, what they do is to create work for the generality of people, not to amass cash for themselves.”

Meanwhile, the Vice President of Dangote Industries Ltd., Devakumar Edwin, revealed that the refinery is currently refining 350,000 barrels of crude daily.

While the facility’s full capacity is 650,000 barrels per day, the company has chosen a phased operational approach.

“The full capacity is 650,000 barrels per day; what we are now doing is going around 350,000 because the idea is, till I start the refinery in full, there is no point for me to be pushing at the production level because the full refinery is operational, we will be making money.

“Well, the Nigerian crude production is more than double our requirements. So there is more than available crude within Nigeria,” Edwin said.