LAGOS JULY 2ND (NEWSRNAGERS)-Dangote Petroleum Refinery has reduced the ex-depot price of premium motor spirit (PMS) to ₦840 per litre, representing a ₦40 drop from its previous rate of ₦880. The price cut comes amid concerns over rising pump prices and ahead of a planned nationwide distribution rollout scheduled for August 15.
The announcement was made on Monday by Anthony Chiejina, Chief Corporate Communications Officer of the Dangote Group. The reduction follows a global drop in oil prices, with Brent crude declining by 1.54 per cent, from $68.67 on June 23 to $67.61.
The price adjustment comes days after the Nigerian National Petroleum Company (NNPC) Limited raised petrol prices to ₦925 per litre at some of its Lagos retail stations. The NNPC had earlier increased prices from ₦915 just two days prior.
In preparation for its national rollout, Dangote Refinery says it has acquired 4,000 compressed natural gas (CNG)-powered tankers to facilitate fuel distribution across Nigeria. It plans to supply petrol and diesel directly to retail stations,
manufacturers, telecommunications companies, aviation operators, and other major users, without additional logistics charges.
The company, in a statement released, said, “This strategic programme is part of our broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability, and supporting Nigeria’s economic development.”
Dangote Petroleum Refinery also announced the introduction of a two-week credit facility. Buyers purchasing at least 500,000 litres of PMS or diesel will qualify for an additional 500,000 litres on credit, subject to bank guarantees. Registration and KYC processes for interested buyers began on June 16 and will continue through August 15.
The refinery said the initiative is in line with the federal government’s economic policy direction.
“This move is aligned with the Renewed Hope Agenda of President Bola Ahmed Tinubu,” the statement reads. “It reflects a shared vision of economic stability, industrial growth, and inclusive development.”
Despite the ambitious plan, reactions have been mixed. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns that Dangote’s logistics-driven strategy could lead to a form of monopoly, threatening jobs within the downstream sector.
The Major Energies Marketers Association of Nigeria (MEMAN) has also called for greater clarity on the refinery’s distribution model.
Industry analysts say the move could lower fuel costs for consumers and reduce inflation, though they caution that market disruptions may occur if existing players in the sector are pushed out.
Dangote Group has said its logistics strategy could save Nigeria over ₦1.7 trillion annually and revealed that over ₦720 billion has been invested in acquiring the 4,000 new trucks.
The company reiterated its commitment to equitable fuel access, stating, “We are committed to ensuring equitable fuel access for all Nigerians, wherever they may be.”
Guardian-Nigeria
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