Dangote Refinery Slashes Petrol Prices, Now Cheapest in Nigeria

• Dangote Petroleum Refinery has decided to reduce its ex-depot petrol prices for marketers by N40 per litre
• The move follows the decision by private depots to reduce their prices to attract more customers to their facilities
• The price adjustment by Dangote refinery is expected to lead to changes in pump prices at filling stations

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Dangote Petroleum Refinery has cut the ex-depot price of Premium Motor Spirit (PMS), also known as petrol to N840 per litre.

The new rate represents a N40 reduction from the N880 announced two weeks ago.

Anthony Chiejina, Chief Corporate Communications Officer of the Dangote Group, confirmed the new price, stating that it has been in effect since June 30, Punch reports.

Chiejina said:

“PMS price has been reduced from N880 to N840 per litre effective 30th June."

The ex-depot price is the cost at which fuel is sold to marketers before it reaches filling stations.

Dangote rival depots' price movement

Dangote price adjustment comes as several private depot operators across Lagos and other regions also slashed their prices in a bid to attract more marketers and gain market share.

PetroleumPrice.ng reports that between June 23 and 27, major private depots in Lagos, including Aiteo, Nipco, and AIPEC, have cut their ex-depot rates for petrol to N870 and N874 per litre.

The Dangote Refinery, currently the only facility producing petrol in Nigeria, began commercial fuel sales earlier this year and has since emerged as a key player in the domestic fuel supply chain.

Industry analysts say the price cuts may result in further downward adjustments in pump prices at filling stations nationwide.

This will potentially provide some relief to motorists facing high fuel costs.

10 lowest petrol prices offered by depots as of Tuesday morning

Here is an insight into the cheapest depots for marketers to buy petrol, with Dangote leading with the lowest price.

• Dangote: N840
• Aiteo: N860
• Integrated: N860
• Aipec: N860
• Menj: N860
• Mao: N860
• First Royal: N860
• Pinnacle: N863
• Wosbab: N865
• Matrix Lagos: N865

More price competition in the market

The price competition extends beyond petrol.

For Automotive Gas Oil (AGO), commonly known as diesel, major depots such as African Terminal, Ibachem, Menj, Mao, and Ibeto are maintaining stable prices at N1,000 per litre.

Dangote’s AGO remains higher at N1,010 per litre, with only Rainoil offering a price closer at N1,003.

In the Liquefied Petroleum Gas (LPG) segment, Dangote has also lost its pricing advantage.

Ardova and other depots are offering LPG at N890 per kilogram, the same rate as the Dangote refinery.

Dangote refinery free fuel distribution

Earlier, Legit.ng reported that the Dangote Group has set the date to commence the nationwide fuel distribution to end-users

The company also confirmed that it is investing billions of naira in acquiring CNG-powered trucks to meet the distribution needs

Some of the benefits listed by the refinery include reducing inflation, cutting production costs, creating over 15,000 jobs, and curbing cross-border fuel smuggling.

Source: Legit.ng