Dangote Petroleum Refinery has reduced its petrol price to N840 per litre, cutting costs for Nigerian motorists by N40 from the previous rate of N880 per litre.
The price drop comes as global oil prices have fallen in recent days, with Brent crude declining by 1.54 per cent from $68.67 on 23rd June to $67.61 by close of business on Monday.
Anthony Chiejina, chief corporate communications officer of Dangote Group, announced the price reduction on Monday, saying the refinery was responding to the downward trend in international oil markets.
The timing of the cut is significant, coming just five days after the Nigerian National Petroleum Company (NNPC) Limited raised pump prices to N925 per litre in Lagos. This means Dangote’s wholesale price is now considerably lower than NNPC’s retail price, potentially putting pressure on the state oil company.
Interestingly, Dangote had only raised its price to N880 per litre just one week earlier, showing how quickly the company is adjusting to global market changes.
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The refinery plans to begin nationwide distribution of diesel and petrol on 15th August, having acquired 4,000 new compressed natural gas (CNG)-powered tankers to boost its delivery capacity across Nigeria.
However, the move has sparked concern among industry groups. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said the refinery’s plan to handle its own distribution could create a monopoly and cause significant job losses in the fuel retail sector.
The Major Energies Marketers Association of Nigeria (MEMAN) has also called for clarity on Dangote’s nationwide distribution proposal, suggesting uncertainty about how the scheme will affect existing fuel marketers.
Dangote Group claims its distribution network will save Nigerians over N1.7 trillion annually. The company says it has invested over N720 billion in the 4,000 CNG-powered trucks for the operation.
