Dangote Petroleum Refinery has announced a significant reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, from ₦970 to ₦899.50 per litre. The price adjustment, effective December 19, 2024, is aimed at alleviating transportation costs for Nigerians during the festive season. This move is expected to provide some financial relief for consumers as they prepare for holiday travel and festivities.
In addition to the price cut, Dangote Refinery has introduced a special promotion to further assist Nigerians. The promotion offers consumers an extra litre of petrol on credit for every litre purchased on a cash basis. This credit offer, which is valid for cash purchases, is backed by bank guarantees from Access Bank, First Bank, or Zenith Bank, adding an additional layer of support for consumers.
Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Group, emphasized the company’s commitment to providing Nigerians with high-quality petroleum products at competitive prices. He explained that the refinery’s operations mark a major shift for Nigeria, which has long relied on imported, substandard petroleum products. “The Dangote Refinery signifies the end of Nigeria being a dumping ground for substandard imported products, which have posed significant risks to human health, machinery, and the environment,” Chiejina stated.
The Dangote Refinery, located in Lekki, Lagos, is the largest single-train refinery in the world with a capacity to process 650,000 barrels of crude oil per day. This makes it not only a major player in Nigeria’s domestic petroleum sector but also a key contributor to global petroleum supply. The refinery is fully capable of meeting 100% of Nigeria’s refined petroleum product needs, with additional capacity available for export.
This reduction in petrol prices comes after a previous price adjustment by the refinery in November 2024, when the price was lowered to ₦970 per litre. The current reduction is seen as an additional effort to ease transport costs for Nigerians during the holiday period, which traditionally sees a surge in travel and goods transportation across the country.
The price cut and special promotion are likely to be welcomed by many Nigerians who have faced rising transport costs due to high petrol prices in recent months. Transport costs have a direct impact on the prices of goods and services, and many Nigerians have been feeling the strain of inflation. With the price of petrol now reduced, many expect a corresponding decrease in the cost of transportation and, potentially, in the prices of goods.
However, the impact of this reduction may be limited in the long term, as experts warn that the structural challenges within Nigeria’s petroleum sector still persist. The country continues to face issues related to inadequate infrastructure, regulatory inefficiencies, and the volatile global oil market, which can influence domestic fuel prices. Nonetheless, the Dangote Refinery’s entry into the market is seen as a positive step toward greater self-sufficiency and reduced reliance on imported petroleum products.
