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₦899/Ltr: Why Petrol Price Dropped – Dangote

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1 day ago

Dec 26, 2024.

Dangote reduced petrol ex-depot price to ₦899.50, citing market forces.
He denied claims of $1 billion NNPC financial aid.
The refinery refines 350,000 barrels daily, transforming Nigeria’s oil sector.

Aliko Dangote, President of Dangote Industries Limited, has clarified the recent reduction in the ex-depot price of Premium Motor Spirit (PMS) at his refinery’s loading gantry to ₦899.50 per litre, attributing the decision to market forces and the need to safeguard investments.

Speaking in an Arise TV documentary on YouTube, Dangote emphasized that the move aligns with protecting the multibillion-dollar investment in the refinery.

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“The price reduction is a response to the market. We invested over $20 billion in this refinery, and we must protect our interests and investments,” Dangote said.

EKO HOT BLOG reports that on December 19, 2024, the Dangote Refinery reduced its petrol ex-depot price from ₦970 to ₦899.50 per litre, sparking competition in the downstream sector.

This prompted the Nigerian National Petroleum Company Limited (NNPCL) to lower its own ex-depot price to ₦899 per litre. Additionally, Dangote Refinery partnered with MRS Petrol stations to sell petrol at ₦935 per litre, a move welcomed by Nigerians.

Dangote highlighted the transformative impact of the refinery, which processes 350,000 barrels of crude daily with plans to scale up to 650,000 barrels.

He stressed that reducing petroleum imports alleviates foreign exchange pressure, stating, “40% of our foreign exchange demand stems from petroleum product imports. Reducing imports helps retain foreign currency within the country.”

Addressing misconceptions, Dangote refuted claims of a $1 billion NNPC investment aiding his refinery’s liquidity crisis. “It’s cheeky and nasty for anyone to spread such lies. $1 billion is a drop in the ocean in a $20 billion refinery,” he asserted.

Petrol Price Dropped Dangote

Despite challenges and criticisms, Dangote reaffirmed his commitment to the project, citing patriotism and a desire to leave a lasting legacy. “If I invested in Google or Apple, my returns would be higher and without the headaches. But I chose this for my country.”

Vice President of Dangote Industries, Devakumar Edwin, revealed the facility refines Nigerian crude, which exceeds its operational requirements, ensuring sustainable production.