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As the holiday season approaches, Africa’s richest man, Aliko Dangote, has lowered petrol prices at his massive refinery, giving some relief to motorists facing high fuel costs. From Friday, the refinery began selling Premium Motor Spirit (petrol) at N828 ($0.57) per liter, down from N877 ($0.61), a reduction of N49 ($0.034), or about 5.6 percent.
The cut marks Dangote Refinery’s second major price review in three months as it adjusts to shifts in global oil prices and local supply costs. In December 2024 the refinery had set its ex-depot rate at N899 ($0.62) per liter prompting the Nigerian National Petroleum Company (NNPC) Limited to match the move. Prices, however, rose again to N950 ($0.66) in January 2025 before easing in recent weeks.
Dangote Refinery boosts jobs and savings
The new price comes as the refinery broadens its national distribution network. It recently launched a compressed natural gas (CNG) truck fleet to deliver petrol across Nigeria, a shift expected to save the country about N1.7 trillion ($1.13 billion) annually in fuel transport costs and create 15,000 jobs. The facility has quickly become a dominant supplier in the domestic market, even as fuel marketers face tighter profit margins and higher operating expenses.
Last week, Dangote Industries said it would ensure steady supplies of petrol and diesel through the Christmas and New Year period. Anthony Chiejina, Group Chief Branding and Communications Officer, said the plant now releases over 45 million liters of petrol and 25 million liters of diesel daily—volumes exceeding national demand. “We are working closely with regulators and marketers to make sure every part of the country is covered,” he said. “Our goal is to keep Nigeria moving.”
Dangote Refinery targets 1.4 million barrels
Fuel scarcity has long disrupted Nigeria’s holiday travel season, with queues often stretching for miles despite the country’s oil wealth. But Dangote said during a recent event in Lagos that motorists can expect a smoother December this year. “We are committed to maintaining stable prices throughout the festive period,” he said.
Commissioned in 2024 with an initial capacity of 350,000 barrels per day, the Dangote Refinery is moving toward its full design capacity of 650,000 barrels daily. Dangote, whose fortune is valued at $30.5 billion, told Bloomberg the company plans to expand capacity further to 1.4 million barrels per day within three years.
Since operations began, the refinery has helped ease pump prices nationwide. Petrol that once sold for N1,030 ($0.71) a year ago now trades between N841 ($0.58) and N851 ($0.60). The latest price cut, timed with the holidays, underscores Dangote’s growing role in stabilizing Nigeria’s downstream sector, a market long defined by shortages and dependence on imports.
