Dangote Hints On New Petrol Prices Below N620, Confirms Date Nigerians Will Begin To Buy

Dangote Hints On New Petrol Prices Below N620, Confirms Date Nigerians Will Begin To Buy

  • Aliko Dangote's 650,000 barrels per day refinery will soon begin selling petrol to marketers after diesel and aviation fuel
  • The development has raised hope that Nigerians will soon be able to buy petrol below current prices
  • When the Dangote refinery released diesel and aviation fuel, the price of the products crashed 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.

Aliko Dangote, the president of Dangote Group, has hinted that his refinery could positively impact petrol prices.

Dangote spoke at Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum in Nassau, The Bahamas, held on Wednesday, June 12.

Dangote refinery moves to reduce petrol price in Nigeria
Dangote refinery set to begin petrol sale Photo credit: Benson Ibeabuchi
Source: Getty Images

Addressing journalists, Dangote recounted how his refinery brought down the price of diesel from 1,700 to N1,200.

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He, however, noted that the impact of petrol may not be the same, Punch reports.

There were reports that petrol prices could drop as low as N300 per litre when the refinery begins the sale of petrol.

Responding to journalists' questions on possible petrol price cut, Africa's richest man said:

"The gasoline(petrol) price issue is majorly being handled by the government, but let me illustrate with diesel, which is widely used by industries and transporters.
"When we started, diesel was priced at N1,700 with a dollar exchanging at about N1,200. Within two weeks, we reduced the price to N1,000.
"This represents a more than 60% drop from N1,700 to N1,200, and even with the currency now at about N1,500 per dollar, the price remains below N1,200.

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"This is a significant improvement, and diesel is now readily available, stopping our previous hand-to-mouth ways"

Dangote refinery confirms date for petrol sale

Meanwhile, Dangote Refinery earlier shifted the production date for Premium Motor Spirit (PMS) or petrol from June to mid-July.

Dangote confirmed the new production date to journalists at the facility in Lagos on Monday, June 10, 2024.

Dangote said the date change was due to a slight delay.

Dangote refinery: Marketers register to buy petrol

An earlier report by Legit.ng disclosed that oil marketers have begun registering with the company to lift petrol when the product becomes available.

The marketers are reportedly registering as individual business owners and applying for a direct fuel supply from the refinery.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) disclosed that it would continue negotiations with the facility to obtain a bulk supply for its members, who may need more money to afford large petrol purchases.

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Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng

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Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.