Breaking: Dangote Shares Why Petrol Prices Fell To ₦899.50 In Major Price Cut

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

Dangote stressed his dedication to protecting 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. This is a refinery where we have invested over $20 billion, and we must protect both our interests and investments.”

He made these remarks in an interview featured in an Arise TV documentary on YouTube, released on Wednesday.

Shifting Market Competition

On December 19, 2024, Dangote Refinery lowered its ex-depot petrol price from ₦970 to ₦899.50 per litre, a move that ignited fierce competition in the downstream sector and led the Nigerian National Petroleum Company Limited (NNPCL) to follow suit with a reduction to ₦899 per litre.

Additionally, Dangote Refinery entered into a partnership with MRS Petrol Station to sell petrol at ₦935 per litre at retail outlets nationwide, a decision that has been met with widespread public approval.

Refinery’s Game-Changing Role for Nigeria

Dangote highlighted the refinery’s transformative potential, noting its capacity of 650,000 barrels per day and its potential to revitalize Nigeria’s oil sector and economy. He also emphasized the burden of petroleum imports on the country’s foreign exchange reserves.

“40 percent of our foreign exchange demand is driven by the petroleum product trade. The more we allow imports, not because I oppose imports, but the more we rely on them, the more we drain our foreign exchange as most of those letters of credit for petroleum products are not even bringing goods into Nigeria.”

Dangote acknowledged that criticism is inevitable but maintained his resolve: “In the last 100 years, no one has invested $20 billion into a single project in Nigeria. Criticism will not stop us from pushing forward with our plans.”