Latest news with #DangoteOilRefinery
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.
Zawya
16-06-2025
- Business
- Zawya
Nigeria's Dangote refinery to supply fuel directly, challenging local traders
The Dangote Oil Refinery will in August begin directly begin supplying fuel to retail stations, manufacturers, telecoms firms, and other large users, a move that could enhance supply but puts it in direct competition with local fuel traders. Africa's biggest refinery with 650,000 bpd capacity began processing gasoline for the local market last year and has allowed local fuel traders lift products from its refinery. Now it seeks to take on distribution. To facilitate the undertaking, the refinery said in a statement on Sunday that it had procured 4,000 new Compressed Natural Gas (CNG)-powered trucks, and will build over 100 CNG refuelling stations across the country. The refinery said it will also offer a credit facility, allowing purchases of 500,000 liters to access an additional 500,000 liters on credit for two weeks under bank guarantee. Dangote's planned deployment of 4,000 trucks is more than double the number of trucks currently in operation and this is unsettling local fuel traders. "In one fell swoop, he's trying to wipe us out," said Billy Gillis Harry, head of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN). The group comprising over 6,700 members said introducing cheaper CNG trucks poses a threat to the livelihood of truckers and will erode the businesses of traders supplying the telecom companies, retail stations and industries. (Reporting by Isaac Anyaogu; Editing by Chizu Nomiyama )
Time of India
29-05-2025
- Business
- Time of India
EIL records ₹8,214 cr order inflow in FY25; PAT highest in 10 years at ₹465 cr
New Delhi: Engineers India Limited (EIL) recorded an all-time high order inflow of ₹8,214 crore in FY2024-25, resulting in a total order book of approximately ₹11,700 crore. The standalone profit after tax (PAT) for the fiscal stood at ₹465 crore, the highest in the last ten years. The consultancy segment accounted for 56 per cent of the order inflow, while 36 per cent came from energy efficient infrastructure projects, including high-end data centres, laboratories, and academic complexes. Around 36 per cent of the business was secured through competitive bidding. EIL's international business contributed ₹1,077 crore, the highest in the last decade. The company was involved in key overseas projects, including the Dangote Oil Refinery in Nigeria, and ongoing engagements in Mongolia, Bahrain, Kuwait, Oman, Guyana, and several countries in Africa. The company is expanding its UAE office to serve as a regional hub and is working to open a new office in Saudi Arabia. In the green energy sector, EIL is implementing a biorefinery project for ABRPL in Assam and is developing ethanol projects for NRL and NTPC. It is also setting up a Bio-ATF facility for MRPL and has provided EPCM services for a 10 MW green hydrogen production facility in Vijaipur, Uttar Pradesh, for GAIL. EIL signed multiple Memorandums of Understanding (MoUs) during the fiscal year, including agreements with BP, Sunrise CSP, Munition India Limited, Rail Vikas Nigam Limited, and Detect Technologies. These collaborations cover areas such as refining, concentrated solar technology, defence sector infrastructure, railway redevelopment, and AI-based video analytics. The company enlisted 11 new indigenous suppliers and 46 MSME suppliers during the fiscal. Domestic supplies accounted for 95 per cent in the refinery segment and 82 per cent in petrochemicals. Under its startup initiative EngSUI, EIL committed over ₹20 crore in funding, with ₹12 crore disbursed to date. The company filed 27 patents and 3 trademarks during FY25 and is registered with ADNOC for licensing technologies including Sulphur Recovery Units and Gas Sweetening Units.
Business Insider
14-05-2025
- Business
- Business Insider
Dangote refinery cancels June maintenance plan for gasoline section
Nigeria's Dangote Oil Refinery has reportedly cancelled planned maintenance on its 204,000 barrels-per-day gasoline-producing unit for June. Dangote Oil Refinery canceled planned June maintenance after conducting necessary work during an unplanned shutdown. The refinery commenced production of diesel, naphtha, jet fuel, and gasoline in phases since January last year. Economists forecast the refinery's operations may significantly disrupt European-Africa gasoline trade valued at $17 billion annually. Nigeria's Dangote Oil Refinery has reportedly cancelled planned maintenance on its 204,000 barrels-per-day gasoline-producing unit for June, having carried out the necessary work during an unplanned shutdown from April 7 to May 11, according to industry tracker IIR. Dangote Refinery had originally scheduled a 30-day maintenance shutdown in June for its gasoline-producing Residue Fluid Catalytic Cracking (RFCC) unit. The refinery has since pushed back on reports of the unit being under unplanned repair, stating that such claims are not entirely accurate. According to data from shipping analytics firm Kpler, during the unplanned outage, the refinery ramped up exports of residual products such as straight run fuel oil, while shipments of finished fuels like jet fuel and gasoil declined. Dangote refinery The 650,000-barrel-per-day refinery, built by Africa's richest man, Aliko Dangote, began producing diesel, naphtha, and jet fuel in January last year, followed by petrol production in September. The refinery aims to compete with European suppliers, though it has faced challenges in securing enough crude locally. According to the Organisation of the Petroleum Exporting Countries (OPEC), Dangote's oil push in Nigeria is already starting to disrupt the European oil market.
Reuters
19-03-2025
- Business
- Reuters
Nigeria's Dangote Refinery says it will suspend fuel sales in local currency
LAGOS, March 19 (Reuters) - Nigeria's Dangote Oil Refinery announced on Wednesday that it was temporarily suspending fuel sales in the local naira currency to avoid a mismatch between sales in naira and purchases of crude in dollars. The decision by the 650,000-barrel-per-day Dangote Refinery to price its gasoline in dollars could lead to a hike in the gasoline prices and a weakening of the naira as local fuel traders scramble for greenbacks. The refinery on the outskirts of Lagos has struggled to secure sufficient crude volumes under an arrangement by the Nigerian government to sell it crude in naira. "To date, our sales of petroleum products in Naira has exceeded the value of Naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency" the company said in a statement.
