Dangote Reverses Reduction, Announces New Petrol Price
- Dangote Refinery has reversed its ex-depot petrol price reduction announced for marketers a few days ago
- The move came as depot owners across the country face serious pressure to get customers after Dangote kicked off free distribution
- It remained unclear whether the latest price adjustment by Dangote Refinery would lead to changes in the announced pump prices
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 revised the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, to ₦840 per litre.
The new rate reflects a ₦20 increase from the ₦820 announced a few days ago, following the commencement of direct petrol sales to bulk buyers.
Source: Getty Images
Petroleumprice.ng, a price tracker, confirmed the new price as well as changes at depots.
On September 11, Dangote Refinery announced that it will begin the direct supply of petrol with free delivery to selected states.
The refinery in the statement said it is reducing gantry price to N820 per litre and new retail price for seven states was revealed.
The statement reads:
"The retail pump price has been fixed at ₦841 per litre in Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti, and ₦851 in Abuja, Delta, Rivers, Edo, and Kwara, with plans to expand to other states subsequently."
The refinery in an earlier statement noted:
"The Refinery will begin the distribution of petrol and diesel to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users across the country, with free logistics to boost distribution network.
"To ensure smooth take-off of this scheme, Dangote Refinery has invested in the procurement of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers.
"In addition, the refinery will offer a credit facility to those purchasing a minimum of 500,000 litres—allowing them to obtain an additional 500,000 litres on credit for two weeks, under bank guarantee.
Source: Getty Images
Dangote’s rival depots' price movements
Dangote’s price adjustment and direct retail supply come as several private depot operators face pressure to match up in order to attract customers.
On Monday, Dangote sold at ₦840 per litre while other depots prices ar Fynefield (₦890), Liquid Bulk (₦860), Sigmund (₦860), and Rainoil Lagos (₦865).
Pinnacle, one of the leading depots, posted ₦845, Heyden reported ₦835.
Matrix depots across Lagos, Port Harcourt, and Warri traded between ₦850 and ₦860 per litre.
There is expectation that petrol prices will drop in the future.
Benefits of Dangote CNG trucks plan
Earlier, Legit.ng reported that Aliko Dangote, Africa’s richest man and president of Dangote Group explained factors behind recent petrol price increases.
The billionaire who is now fully focus on his refinery accused the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) of imposing levies of up to ₦50,000 on every truck that loads fuel at the Dangote Refinery.
Dangote continued to insist that union membership for drivers of his 4,000 CNG-powered truck remains voluntary
Source: Legit.ng
