Dangote Refinery Slashes Petrol Price to N840 Amid Global Oil Drop, Plans Nationwide Distribution

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Dangote Petroleum Refinery has announced a reduction in its ex-depot petrol price to N840 per litre, marking a N40 drop from the previous N880. The change is linked to recent declines in global crude oil prices, particularly Brent crude, which dropped 1.54% in the last week. Anthony Chiejina, Dangote Group’s chief communications officer, emphasized that the company’s pricing is directly influenced by international market trends.

The timing of Dangote’s price cut is critical, arriving shortly after the Nigerian National Petroleum Company (NNPC) Limited increased pump prices to N925 per litre in Lagos. This development gives Dangote a competitive edge in pricing and may place pressure on NNPC’s retail operations. The quick turnaround in price adjustments also reflects Dangote’s responsiveness to global oil shifts, having just raised its price the previous week.

In a significant logistics move, Dangote Refinery has acquired 4,000 compressed natural gas (CNG)-powered trucks and is set to begin nationwide distribution of petrol and diesel starting August 15. The company has invested over N720 billion into this effort and claims the new system will save Nigerians over N1.7 trillion annually by improving efficiency and cutting distribution costs.

However, the refinery’s plan to independently distribute fuel has raised alarms among industry stakeholders. PETROAN (Petroleum Products Retail Outlets Owners Association of Nigeria) warned that Dangote’s vertical integration could lead to monopolistic practices and job losses within the retail sector. MEMAN (Major Energies Marketers Association of Nigeria) also expressed concern, seeking further clarification on the proposed distribution framework.

Despite the concerns, the Dangote Group remains optimistic about its impact on the Nigerian energy landscape. With its massive investment in infrastructure and a focus on using CNG to power distribution, the refinery aims to lead the country toward cost-effective and cleaner fuel solutions while potentially reshaping the competitive dynamics in Nigeria’s oil market.

Source: Business day

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