Dangote Crashes Petrol Prices by N259 in Lagos, Other States
- Aliko Dangote has confirmed to the press that his petrol price has dropped the market rate by N259
- The refinery hopes to have more impact in the future as it finally begins direct distribution of fuels
- Dangote Refinery is celebrating its anniversary and confirmed that its capacity would be increased
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Africa’s richest man, Aliko Dangote, has confirmed that the Dangote Petroleum Refinery has cut petrol prices by N259 in the past year.
Source: Getty Images
Speaking to journalists on Monday, September 15, to mark the refinery’s first anniversary, he also claimed that Nigeria’s decades-long fuel supply crisis has been stopped.
Dangote, who was also reacting to intense criticism from the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), shared the impacts of his refinery.
According to him, the pump price, which stood at about N1,100 per litre last year, had dropped to N841 in the South West, Abuja, Delta, Rivers, Edo and Kwara states.
“Despite opposition and economic headwinds, the refinery has successfully reduced the price of petrol from nearly N1,100 before production began to N841. With the rollout of CNG-powered trucks, this price reduction will soon be felt nationwide."
Source: Getty Images
Dangote shares goals for petroleum refinery
Africa's richest man also said that the 650,000-barrels-per-day refinery has deployed 1,000 Compressed Natural Gas (CNG)-powered trucks as part of its direct fuel distribution programme.
The initiative, according to Dangote, will create 24,000 jobs in the first phase, according to the Nation.
He added that the refining capacity would rise to 700,000 bpd next year, adding that the plant can meet Nigeria’s domestic demand while generating foreign exchange through exports.
Between June and early September, the refinery exported more than 1.1 billion litres of petrol, he said.
Dangote, who backed the federal government’s target of growing Nigeria into a $1 trillion economy by 2031, urged more Nigerians to invest locally.
He acknowledged resistance from some vested interests in the downstream sector, but maintained the project was designed to support growth across Nigeria and Africa.
“We have been battling fuel queues since 1975, but today Nigerians are witnessing a new era. What we have done is to make our country and continent proud."
Dangote price drop, CNG buses ease logistics burden
Energy economist Obakhume Abidemi Kaseem has weighed in on Dangote’s petrol price crash, pointing to crude oil prices, exchange rates as key determinants.
He stressed that the price of crude oil and the naira-dollar exchange rate remain critical factors in determining how much Nigerians pay for fuel.
“Brent crude price on oilprice.com as of this morning (Wednesday, September 17) is about $68 and Naira currently exchange for about ₦1,530 to a dollar as of this morning,” he told Legit.ng.
Kaseem further noted the impact of transport logistics, adding that the recent shift to compressed natural gas (CNG) vehicles could ease costs for consumers.
“Also, the recent acquisition of CNG buses by DORC would absorb some of the logistics costs that would ordinarily be passed to the end-users.”
NUPENG releases agreement with Dangote
Earlier, Legit.ng reported that the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has shared its agreement with Dangote Refinery and Petrochemicals Limited.
The federal government, through the labour minister Muhammad Maigari Dingyadi, stepped in to help both parties reach an agreement.
Representatives present at the meeting were said to include Sayyu Dantata and O.K. Ukoha for NUPENG, Comr. Benson Upah for the NLC, and management from the Dangote Group.
The process of unionisation is set to commence immediately and will be completed within two weeks, from September 9 to September 22, 2025.
Editorial assistant Ololade Olatimehin provided exclusive commentary from a sports analyst for this report.
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Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
