Latest news with #DangotePetroleumRefinery
Business Insider
2 days ago
- 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
3 days ago
- Business
- Business Insider
Dangote sets rollout date for fuel deliveries after acquiring 4,000 CNG trucks for N720bn
The Dangote Group has confirmed plans to resume direct delivery of refined petroleum products to filling stations, industrial plants, and other bulk fuel consumers across Nigeria, following a major N720 billion investment in 4,000 Compressed Natural Gas (CNG)-powered trucks. Dangote Group plans to resume direct delivery of refined petroleum products using a fleet of CNG-powered trucks. Operations are set to start on August 15, 2025, covering Nigeria's daily consumption of refined products. The initiative aims to reduce transportation costs while adopting cleaner energy solutions. This marks a significant shift in Nigeria's downstream logistics, aimed at improving distribution efficiency and cutting transportation costs. According to the company, the new CNG fleet—acquired through Dangote Petroleum Refinery and Petrochemicals—will be deployed starting August 15, 2025. In a statement quoted by The Punch, the company said the move was designed to meet Nigeria's daily consumption of 65 million litres of refined products. ' This includes 45 million litres of Premium Motor Spirit, 15 million litres of diesel, and 5 million litres of aviation fuel,' it stated. 'With the average logistics cost estimated at N45 per litre, the refinery will cover over N1.07tn annually in free distribution expenses. Dangote Group is investing N720bn in the acquisition of 4,000 CNG-powered trucks as well as the establishment of nationwide CNG 'mother and daughter' stations, among other infrastructure to implement the free distribution initiative,' the statement added. The decision forms part of a broader strategy to adopt cleaner energy sources while bypassing third-party marketers and eliminating the bottlenecks that have historically plagued fuel delivery in Nigeria. Dangote's foray into petroleum distribution With operations set to begin in phases, industry stakeholders are closely monitoring what could become a transformative moment in Nigeria's petroleum sector, particularly as the Dangote Refinery ventures into the distribution of diesel, petrol, and aviation fuel. This area was previously the exclusive domain of established petroleum marketers. In an earlier report, Business Insider Africa analyzed Dangote's entry into the product distribution chain and how it would benefit the refinery's broader operations. Dangote's refinery is currently running at about 85% of its 650,000 barrels-per-day capacity, making it one of the world's largest single-train facilities—a scale that significantly reduces the cost per barrel. With the rollout of 4,000 CNG-powered trucks, which are around 40% cheaper to operate than diesel-powered tankers, logistics costs are expected to drop sharply. This combination effectively eliminates much of the traditional supply chain markup embedded in pump prices. In Nigeria's deregulated downstream sector, where prices are shaped by global oil markets, exchange rates, and transport costs, Dangote's full control from refining to delivery could enable significant savings for consumers and bulk buyers. The return to direct deliveries is expected to boost supply reliability and reflects the company's commitment to cleaner, more efficient logistics in line with Nigeria's energy transition goals. However, the shift has not been without controversy. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has voiced strong concerns that Dangote's direct delivery model could 'wipe out' smaller operators who rely on older, less efficient supply systems.
Business Insider
20-06-2025
- Business
- Business Insider
Dangote's growing reliance on U.S. crude tied to Nigeria's supply failures
Aliko Dangote, President of the Dangote Group, says his refinery is increasingly depending on crude oil imports from the United States due to Nigeria's failure to meet domestic supply commitments. Aliko Dangote states his refinery increasingly relies on U.S. crude imports due to Nigerian supply challenges. Despite being Africa's largest oil producer, Nigeria has struggled to meet domestic crude supply commitments. The Dangote Refinery has diversified its sources, importing crude grades from the U.S., Angola, and Algeria. Despite being Africa's largest oil producer, Nigeria has struggled to consistently provide crude feedstock to the 650,000-barrel-per-day Dangote Petroleum Refinery, forcing it to look abroad to sustain operations. The Dangote Refinery recently hosted Mrs. Maureen Ogbonna, Coordinator of the Technical Committee of the One-Stop Shop for the Sale of Crude and Refined Products in Naira initiative, during an official visit to the facility. Ogbonna, who led a delegation to the refinery, described it as ' a breath of fresh air ' with a transformative impact across virtually every sector of the Nigerian economy. While applauding the technical committee's role in supporting President Bola Tinubu's naira-for-crude initiative, Aliko Dangote praised the policy's positive effect on the economy. He noted that the crude-for-naira swap deal has helped lower petroleum product prices, reduced pressure on the U.S. dollar, and contributed to stabilizing the local currency. However, Dangote acknowledged that due to ongoing shortages of domestic crude oil, the refinery has increasingly had to rely on imports from the United States in recent months to sustain operations. As a result, U.S. suppliers have become a key fallback, highlighting both Nigeria's supply gaps and the growing role of international markets in sustaining one of Africa's largest energy investments. Dangote's dependence on foreign crude According to the National Bureau of Statistics (NBS), Nigeria spent ₦1.19 trillion on crude oil imports in the first quarter of 2025, making it the country's third most imported commodity during the period—despite being Africa's top oil producer. The contradiction highlights persistent supply gaps to local refineries, especially the Dangote Petroleum Refinery. Findings show that the Dangote Refinery is projected to import 17.65 million barrels of crude oil between April and July 2025, beginning with about 3.65 million barrels already delivered over the past two months, amid ongoing allocations under the Federal Government's naira-for-crude policy. As of March 2025, the refinery had received over three million barrels of U.S. crude in a single month, according to Bloomberg. Beyond American crude, the refinery has diversified its sources by importing Angola's Pazflor grade and Algeria's Saharan Blend, both supplied by Glencore Plc.
Business Insider
17-06-2025
- Business
- Business Insider
Fears of a Dangote monopoly spurs backlash against his fuel distribution plan
The Dangote Petroleum Refinery announced a bold plan to deliver fuel directly to Nigerian gas stations on August 15, 2025, which could revolutionize the nation's downstream petroleum industry. The Dangote Petroleum Refinery plans to directly supply fuel to Nigerian gas stations starting August 15, 2025. The initiative includes complimentary logistics, impacting customers like fuel marketers, manufacturers, and more. The Products Retail Outlets Owners Association (PETROAN) opposes the move, citing market destabilization risks. With free logistics provided as a sweetener to improve distribution, the company declared that it would start supplying Premium Motor Spirit (PMS) and diesel to a broad spectrum of customers, including fuel marketers, gasoline dealers, manufacturers, telecom companies, aviation companies, and other large users. However, the industry's biggest players have swiftly criticized and opposed what was seen as a game-changer. The Products Retail Outlets Owners Association (PETROAN), which represents the interests of retail fuel businesses across the country, has publicly opposed the proposal, as reported by the Punch. The organization claims that Dangote's desire to function as both a producer and a distributor of petroleum products is an overreach that might destabilize the sector and result in significant job losses. What PETROAN said 'The company may leverage its market power to fix prices, limit competition, and exploit consumers, much like it has done in other sectors,' the group disclosed via a statement. 'This could lead to a massive shutdown of filling stations across Nigeria, resulting in widespread job losses. The introduction of 4,000 brand-new Compressed Natural Gas-powered tankers by the Dangote refinery poses a significant threat to the livelihoods of thousands of truck drivers and owners,' the statement added. This is not the first time that concerns have been voiced about the refinery's expanding impact. PETROAN cited similar tendencies in other industries where Dangote Group has a significant presence, accusing the conglomerate of abusing its enormous market clout to dominate and suppress competition. There have been claims that allowing Dangote to dominate both refining and retailing risks distorting pricing processes and reducing transparency in Nigeria's petroleum industry, which is already plagued by inefficiency, opacity, and regional inequities. PETROAN is now urging the Nigerian government to intervene and regulate the refinery's role in fuel distribution to prevent market exploitation and maintain a level playing field. 'It is obvious that Dangote plans to gain full monopoly of the downstream sector, which would enable the company to exploit Nigeria's petroleum consumers. This could lead to higher prices, reduced competition, and decreased economic efficiency.
Business Insider
15-06-2025
- Business
- Business Insider
Dangote refinery to kick off nationwide fuel distribution
Dangote Petroleum Refinery has announced a major fuel distribution initiative set to begin on August 15, 2025, aimed at transforming Nigeria's downstream petroleum sector. Dangote Petroleum Refinery announced a fuel distribution initiative starting August 15, 2025. The program aims to supply PMS and diesel across Nigeria to various sectors, including energy and aviation. To remove logistical challenges, the company will provide complementary logistics support to buyers. Dangote Petroleum Refinery has announced a major fuel distribution initiative set to begin on August 15, 2025, aimed at transforming Nigeria's downstream petroleum sector. 'Effective 15th of August 2025, the Refinery will begin the distribution of Premium Motor Spirit (PMS) and diesel to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users across the country, with free logistics to boost the distribution network,' the refinery said in a statement on X. To eliminate logistics bottlenecks and reduce distribution costs, the company offers free logistics support to fuel purchasers as part of the programme. This move is expected to significantly lower fuel costs, especially for key sectors, and ease inflationary pressure. To support the smooth rollout, Dangote Refinery has invested in 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers. The company is also building CNG refuelling infrastructure across the country, supported by a fleet of over 100 additional CNG tankers to ensure seamless product movement. Credit support for high-volume purchases The refinery, the world's largest single-train refinery, also announced a credit facility for high-volume buyers. Those purchasing a minimum of 500,000 litres will qualify to receive an additional 500,000 litres on credit for two weeks, backed by a bank guarantee. In a statement released by the company, Dangote Refinery described the initiative as a 'strategic programme' aligned with its commitment to enhancing energy efficiency, promoting sustainability, and driving inclusive economic growth.
