Table of Contents
Key Points
- Dangote Refinery reduces petrol price by 6.3 percent from N950 to N890 ($0.64 to $0.60), following favorable shifts in global energy markets.
- The price cut aligns with Dangote’s efforts to ease inflation and support Nigeria's goal of self-sufficiency in petroleum products and global market influence.
- The last price dip occurred in December 2024, sparking competition as NNPC matched Dangote’s price before rising again to N950 ($0.64) in January.
The Dangote Petroleum Refinery, owned by Africa's richest man, Aliko Dangote, has reduced the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, by 6.3 percent, lowering it from N950 ($0.64) to N890 ($0.60). The decision follows favorable shifts in the global energy market and a notable drop in international crude oil prices.
The last time petrol prices were this low was in December 2024, when Dangote Refinery reduced its ex-depot price to N899 ($0.61), sparking intense competition in Nigeria’s downstream sector. At the time, the state-owned Nigerian National Petroleum Company (NNPC) Limited matched the refinery’s pricing, cutting its own ex-depot rate to N899 ($0.61) per liter. Prices later climbed back to N950 ($0.64) in January 2025.
Announcing the latest price cut, which takes effect on Saturday, Feb. 1, the refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, said in a statement: “This adjustment is a direct response to the positive outlook in global energy and gas markets, as well as the recent drop in international crude oil prices.” He added that the price revision aligns with Dangote Refinery’s commitment to transparency and fairness. This follows the refinery’s Jan. 19 update, when a modest increase was implemented due to rising crude oil prices at the time.
Dangote cuts petrol price to ease inflation
Dangote Refinery believes the price cut—from N950 ($0.64) to N890 ($0.60)—will help lower petrol costs nationwide, ease inflationary pressures, and bring down the overall cost of living. The refinery also urged marketers to pass on the benefits to consumers, aligning with the economic recovery efforts led by President Bola Ahmed Tinubu, who aims to make Nigeria self-sufficient in refined petroleum products and a major player in the global oil market.
The price reduction comes as the $20 billion refinery, which has a capacity of 650,000 barrels per day, ramps up efforts to secure a steady crude supply. After facing shortages from NNPC, Dangote Refinery is constructing eight new crude storage tanks to accommodate imported oil. The additional tanks will hold 6.3 million barrels—equivalent to about 1 billion liters—increasing the refinery’s total storage capacity by 41.67 percent to 3.4 billion liters. Four of the new tanks have already been completed, with the rest nearing finalization.
Dangote bets big on Africa’s energy
Despite challenges with local crude supply, the refinery has made significant strides since it began producing diesel and aviation fuel in early 2024, followed by petrol in September. Its products are now being distributed within Nigeria and exported to markets in Cameroon, Angola, Ghana, and South Africa.
Beyond refining, Dangote is looking to expand his influence in Africa’s energy and industrial sectors. He has announced plans to build a new refinery in Angola and increase cement production across the continent, reinforcing his role in Africa’s industrial transformation.
His ambitious investments are paying off. According to the Bloomberg Billionaires Index, Dangote’s net worth stands at $27.4 billion, largely driven by his 92.3 percent stake in Dangote Petroleum Refinery, which is now valued at $18.6 billion.
