More Headache for Importers As Dangote Announces Decision on Fuel Pricing After Meeting Tinubu
- Aliko Dangote has promised Nigerians that petrol from his refinery will remain “reasonable” and competitive to ensure pump prices is affordable
- The cheaper alternative offered by Dangote Refinery has put more pressure on importers of petroleum products
- Dangote also said that the $20bn refinery is a long-term national investment, not one aimed at quick profit recovery
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.
Importers may be set for tougher competition as Africa’s richest man, Aliko Dangote has declared that petrol from the Dangote Refinery will continue to sell at a “reasonable” and market-competitive price.
This is expected to further pressure fuel importers still active in Nigeria’s downstream sector.
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Speaking after a closed-door meeting with President Bola Tinubu at the State House on Friday, Dangote said the refinery intends to keep petrol prices competitive despite global oil price volatility and persistent cross-border smuggling.
He noted that Nigeria’s current pump price around N800 per litre remains far cheaper than rates in neighbouring countries, which average N1,500 to N1,600 per litre.
The price gap, he warned, continues to encourage smuggling even though incidences have reduced.
Dangote told reporters:
“Prices are going down, and we have decided that they have to go down because we’re competing with imports. Smuggling has reduced, but not entirely. As long as the price difference remains, people will still smuggle. But diesel, gasoline, and PMS will continue to be sold at very reasonable market prices.”
Analysts say the refinery’s aggressive pricing could stabilise domestic supply and reduce arbitrage losses, a key factor behind fuel scarcity and diversion.
$20bn re refinery investment is for the future
Dangote also said that recovering the estimated $20 billion invested in the 650,000-barrel-per-day facility is not an immediate priority, the Nation reports.
The refinery which is aiming to be the biggest in the world started supplying diesel and jet fuel in January 2024 and rolled out petrol to the Nigerian market in September.
Speaking on the achievement and return of investment plan, Dangote said:
“We’re not here to make our $20 billion back quickly. This is a long-term investment. The legacy I want to leave is to ensure that whatever Nigeria needs, we will help deliver it.”
Source: Getty Images
Tinubu engagement focused on energy security
On his meeting with President Tinubu, Dangote said it was centred on economic stability, environmental concerns, and the refinery’s role in strengthening national energy security., Punch reports.
The discussion was described as “very fruitful,” with Dangote stressing the need for continued government-private sector collaboration.
Since the removal of petrol subsidy in 2023, pump prices have risen from about N160 to over N1,000 per litre at the peak of market instability.
With the refinery, producing more prices have eased to the mid-N800 levels.
NNPC reduce petrol prices
Earlier, Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) has revised petrol prices at its retail outlets nationwide.
In Lagos, the pump price dropped from N910 to N890 per litre, while in Abuja, it fell from N940 to N920 per litre.
While filling stations like Ardova, MRS, First Royal, among others are now dispensing petrol to customers at N890 per litre.
Source: Legit.ng
