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Reuters
a day ago
- Business
- Reuters
Dangote refinery imports 4,000 gas-powered trucks for local fuel distribution
LAGOS, Aug 11 (Reuters) - Nigeria's Dangote Refinery is importing 4,000 natural-gas powered trucks as part of plans to distribute refined products directly into the local market, the company said. In June, the oil refinery said it will begin directly supplying fuel to retail stations, manufacturers, telecoms firms, and other large users in August, a move that could enhance supply but puts it in direct competition with local fuel traders. Dangote's logistics expansion adds a new push to its market entry for its mammoth 650,000 barrels per day refinery, which is Africa's largest. It said the trucks represent a 720 billion naira ($469.89 million) investment and that it will be rolled out on August 15. Anthony Chiejina, Dangote Industries Limited's head of branding and communication, said the move will help the refinery cut logistics costs and improve supply directly to marketers. Africa's top oil export has turned to gas as an alternative fuel after it scrapped a popular but costly subsidy on petrol that has seen pump prices rise sharply. But adoption is slow. ($1 = 1,532.2800 naira)
Business Insider
09-07-2025
- Business
- Business Insider
Nigeria's fuel price war could be back on as Dangote shakes the market again
Aliko Dangote, via the Dangote Oil Refinery, is continuing his campaign to aggressively influence Nigeria's fuel market. Recent reports indicate that he has slashed fuel prices again, the second time in less than 2 weeks. Aliko Dangote continues to impact Nigeria's fuel market through competitive pricing strategies. Recently, the Dangote Oil Refinery reduced fuel prices twice in two weeks, now at N820 per liter. This move aims to alleviate financial pressures on Nigerian consumers amid global supply chain changes. The Dangote Refinery's concurrent fuel price cut is reminiscent of his strategy earlier this year, when he forced the Nigerian National Petroleum Corporation (NNPC) into a pricing war, inadvertently dominating the fuel market. Last week, the Dangote Oil Refinery reduced the gantry price of Premium Motor Spirit (PMS), also known as petrol, by 4.5%, lowering the fuel price from N880 to N840 per liter. This week, the refinery has yet again slashed fuel prices, this time from N840 to N820. As reported by the Punch, this shows a drop of N60 (6.82%) in less than a week. According to the spokesman of the Dangote Group, Anthony Chiejina, the move is intended to ease spending for Nigerians. 'We have reduced petrol gantry price to N820 from N840 per litre,' he stated, disclosing that the initiative took effect from Tuesday. Just a few weeks back, Dangote, the NNPC, and other marketers had increased fuel prices in response to the conflict in the Middle East, specifically the scuffle between Israel and Iran. However, Dangote has reversed this decision, altering fuel prices to reflect the realities of the global supply chain. Dangote's price war Beginning in December 2024, Dangote started reducing fuel prices to make the commodity more affordable to Nigerians. This fuel cuts ramped up in the new year, as reports indicated every other week that the newly functional oil refinery was slowly chipping away at the cost of fuel. At the height of the price cuts, fuel prices had gone from as high as N1200 per liter to N860, forcing the entire market to react, with some players highlighting the losses they had to endure. According to these marketers, they imported petroleum at a certain cost and were compelled to decrease their rates due to Dangote's competitive pricing, resulting in razor-thin profit margins and, in some cases, outright losses. This dynamic defined the pricing war in Q1 2025, up until the NNPC responded by shutting off crude supply to the Dangote Refinery. The NNPC's response, together with other external market forces, undoubtedly resulted in fuel prices surging again.
Business Insider
01-07-2025
- Business
- Business Insider
Petrol price lowered again by Dangote as new supply strategy takes shape
Dangote Petroleum Refinery has cut the gantry price of Premium Motor Spirit (PMS), also referred to as gasoline, by 4.5%, bringing the fuel price down from N880 to N840 per litre. Dangote Petroleum Refinery has reduced the price of Premium Motor Spirit (PMS) from N880 to N840 per litre, a 4.5% cut. The price reduction aligns with a global decrease in oil costs, with Brent crude prices experiencing a drop of 1.54%. This initiative is part of Dangote's broader strategy to enhance efficiency, support sustainability, and boost Nigeria's economic development. This is a calculated attempt to combat growing fuel costs and increase market competition. Anthony Chiejina, the Dangote Group's Chief Corporate Communications Officer, made the announcement on Monday, following a drop in global oil prices, with Brent crude down 1.54% from June 23 to $67.61. 'This strategic programme is part of our broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability, and supporting Nigeria's economic development,' the company issued. This price reduction also comes ahead of Dangote Refinery's ambitious statewide distribution launch scheduled for August 15. On that day, the refinery intends to deploy a fleet of 4,000 Compressed Natural Gas (CNG) tanker trucks to transport gasoline directly from its refinery to retailers, manufacturers, telecom operators, and airports around Nigeria. Over 100 new CNG refuelling points will be introduced as part of the deployment, with the goal of reducing logistics bottlenecks and increasing fuel accessibility. This isn't the first time the refinery has cut pricing in recent months; in April, Dangote reduced fuel costs to N865 per litre. The adjusted price represented a N15 decrease from the original N880 per litre. Dangote and NNPC pricing Days prior to the latest price cuts, as reported by The Guardian, the Nigerian National Petroleum Company (NNPC) Limited increased the price of gasoline at some of its retail outlets in Lagos to ₦925 per liter. Both parties went back and forth in cutting down prices, so as to remain competitive.
Business Insider
21-05-2025
- Business
- Business Insider
Naira-for-crude deal helping Nigerians pay less for petrol
The Dangote Petroleum Refinery has announced that its naira-for-crude oil agreement with the Nigerian government has enabled it to lower petrol prices, ultimately reducing costs at fuel stations for Nigerian consumers. Dangote Petroleum Refinery implemented a naira-for-crude oil agreement to reduce petrol prices in Nigeria. The initiative supports price stability and contributes to national economic development. Collaboration with the Nigerian government aligns with the 'Nigeria First Policy' to prioritize local goods and services. The Dangote Petroleum Refinery has announced that its naira-for-crude oil agreement with the Nigerian government has enabled it to lower petrol prices, ultimately reducing costs at fuel stations for Nigerian consumers. In a statement, the company's Group Chief Branding and Communications Officer, Anthony Chiejina, said that even though global crude oil prices keep changing, Dangote has continued to reduce petrol prices and promised to keep them stable and affordable. The company reaffirmed that price stability is part of its broader mission to contribute positively to national economic development. The statement read: 'We are immensely grateful to President Bola Tinubu for making this possible through the commendable naira-for-crude initiative, which has enabled us to consistently reduce the price of petroleum products for the benefit of all Nigerians, ' the statement stated. 'Our approach aligns with the objectives of the Federal Government's 'Nigeria First Policy', which promotes the prioritisation of locally-produced goods and services. Naira to crude controversy In March, reports emerged that the Nigerian National Petroleum Company (NNPC) had halted its naira-for-oil program, which had allowed local refineries to buy crude oil using the Nigerian currency. The news sparked concerns that the move could lead to a rise in fuel prices and increased pressure on the foreign exchange market. However, NNPC clarified that the agreement was a six-month pilot deal, dependent on crude availability, and scheduled to expire at the end of March 2025. Since the start of operations in 2023, NNPC has supplied the Dangote Refinery with over 84 million barrels of crude oil. The state oil company also confirmed it has begun talks with Dangote Refinery to extend the naira-denominated crude oil supply contract, reinforcing ongoing collaboration to ensure energy stability. By refining oil within Nigeria at its large refinery, Dangote said it is helping the country save foreign exchange, improve energy security, and boost the economy, supporting President Tinubu's economic recovery plan.
