Key Factors
- Dangote Refinery reduces petrol worth by 6.3 p.c from N950 to N890 ($0.64 to $0.60), following favorable shifts in international power markets.
- The value minimize aligns with Dangote’s efforts to ease inflation and assist Nigeria’s purpose of self-sufficiency in petroleum merchandise and international market affect.
- The final worth dip occurred in December 2024, sparking competitors as NNPC matched Dangote’s worth earlier than rising once more to N950 ($0.64) in January.
The Dangote Petroleum Refinery, owned by Africa’s richest man, Aliko Dangote, has decreased the ex-depot worth of Premium Motor Spirit (PMS), generally often known as petrol, by 6.3 p.c, reducing it from N950 ($0.64) to N890 ($0.60). The choice follows favorable shifts within the international power market and a notable drop in worldwide crude oil costs.
The final time petrol costs had been this low was in December 2024, when Dangote Refinery decreased its ex-depot worth to N899 ($0.61), sparking intense competitors in Nigeria’s downstream sector. On the time, the state-owned Nigerian Nationwide Petroleum Firm (NNPC) Restricted matched the refinery’s pricing, reducing its personal ex-depot price to N899 ($0.61) per liter. Costs later climbed again to N950 ($0.64) in January 2025.
Announcing the latest price cut, which takes impact on Saturday, Feb. 1, the refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, stated in a press release: “This adjustment is a direct response to the constructive outlook in international power and fuel markets, in addition to the latest drop in worldwide crude oil costs.” He added that the value revision aligns with Dangote Refinery’s dedication to transparency and equity. This follows the refinery’s Jan. 19 replace, when a modest enhance was carried out as a consequence of rising crude oil costs on the time.
Dangote cuts petrol worth to ease inflation
Dangote Refinery believes the value minimize—from N950 ($0.64) to N890 ($0.60)—will assist decrease petrol prices nationwide, ease inflationary pressures, and convey down the general price of dwelling. The refinery additionally urged entrepreneurs to move on the advantages to customers, aligning with the financial restoration efforts led by President Bola Ahmed Tinubu, who goals to make Nigeria self-sufficient in refined petroleum merchandise and a serious participant within the international oil market.
The value discount comes because the $20 billion refinery, which has a capability of 650,000 barrels per day, ramps up efforts to safe a gentle crude provide. After dealing with shortages from NNPC, Dangote Refinery is constructing eight new crude storage tanks to accommodate imported oil. The extra tanks will maintain 6.3 million barrels—equal to about 1 billion liters—rising the refinery’s complete storage capability by 41.67 p.c to three.4 billion liters. 4 of the brand new tanks have already been accomplished, with the remaining nearing finalization.
Dangote bets huge on Africa’s power
Regardless of challenges with native crude provide, the refinery has made important strides because it started producing diesel and aviation gasoline in early 2024, adopted by petrol in September. Its merchandise at the moment are being distributed inside Nigeria and exported to markets in Cameroon, Angola, Ghana, and South Africa.
Past refining, Dangote is trying to broaden his affect in Africa’s power and industrial sectors. He has introduced plans to construct a brand new refinery in Angola and enhance cement manufacturing throughout the continent, reinforcing his position in Africa’s industrial transformation.
His bold investments are paying off. In line with the Bloomberg Billionaires Index, Dangote’s internet price stands at $27.4 billion, largely pushed by his 92.3 p.c stake in Dangote Petroleum Refinery, which is now valued at $18.6 billion.
