Dangote Petrol N44 Cheaper Than Imported: "We Crash the Price Down"
- Dangote Refinery petrol remained N44 per litre cheaper than imported petrol
- Petrol importers are facing intense competition to attract customers due to Dangote’s pricing since it began operations
- Filling stations supplied by Dangote Refinery and its partners now sell petrol at around N739 per litre
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.
Dangote Refinery is offering petrol at prices lower than imported fuel, intensifying competition in the country’s petroleum market.
The refinery’s ex-depot price remains at N699 per litre, while the landing cost of imported premium motor spirit (PMS) has fluctuated between N750 and N780 per litre, according to the Major Energies Marketers Association of Nigeria (MEMAN).
Source: Getty Images
In its latest bulletin on Thursday, January 15 MEMAN reported that the landing cost dropped to N754.96 from N758 last week.
This is a difference of about N44 per litre compared with Dangote’s gantry price.
How Dangote rewrote petrol pricing
Since December, Dangote slashed his petrol gantry price by N129 to ensure consumers paid no more than N740 per litre at MRS filling stations.
Speaking last month, Dangote said:
“We are going to use whatever resources we have to make sure that we crash the price down. For December and January, we don’t want people to sell petrol for more than N740 nationwide.
“Those who want to keep the price high. we will fight as much as we can to make sure these prices are down. If you have money to come and buy, you can pick up petrol at N699.”
Dangote Refinery MD speaks on petrol pricing
Also, the Managing Director of Dangote Refinery, David Bird, has insisted that its fixed petrol price sold at N739 across MRS filling stations nationwide is competitive, Punch reports.
Several filling stations have tried to undercut Dangote's retail price, selling lower than N739 per lire.
Speaking on Wednesday, January 15 he said that stressed that Nigerians have a choice to either purchase Dangote petrol at N739 per litre or alternatives.
Source: Getty Images
He noted:
“The retail price is fully competitive. The consumer has a choice to choose whichever, and I’d like to see a change in how the regulator works for the market”
He also revealed that the refinery achieved 1000 trucks daily and a 500 million liter a day fuel supply during the Yuletide and also assured of nationwide fuel supply and price stability.
Dangote Refinery delivers 43 million litres
Earlier, Legit.ng reported that the Dangote Petroleum Refinery dismissed reports that it shut down its petrol processing unit, revealing that it delivered 43.3 million litres of Premium Motor Spirit to the Nigerian market in a single day.
Officials of the refinery said the volume loaded on Saturday, January 3 alone was enough to meet more than half of Nigeria’s estimated daily petrol consumption, countering claims that production had been halted for maintenance.
Marketers have blamed the price surge on losses incurred from Dangote’s price cut.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
