Latest news with #PremiumMotorSpirit
Business Insider
12 hours ago
- Business
- Business Insider
1 million tons of petrol shipped overseas as Dangote refinery takes Nigerian fuel global
The Dangote Refinery, which this year began exporting Premium Motor Spirit (PMS), also known as petrol, to markets beyond Africa, recently highlighted a major milestone with regards to the initiative. According to the chairman of the business, and Africa's richest man, Aliko Dangote, the refinery exported up to 1 million tons of petrol. The Dangote Refinery has commenced the export of Premium Motor Spirit (PMS) beyond Africa, marking a transformative step in regional energy trade. In June and July 2025, the refinery successfully exported one million tonnes of PMS, signaling an increase in its operational scope. The facility achieved its first gasoline export to Asia in June 2025, followed by earlier low-sulfur fuel oil shipments to Singapore and multiple consignments of jet fuel to global markets. Alhaji Aliko Dangote, President of the Dangote Group, made the revelation on Tuesday at the Global Commodity Insights Conference on West African Refined Fuel Markets, which was organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in collaboration with S&P Global Insights. As reported by The Punch, the Nigerian billionaire noted that the refinery exported up to a million tons of fuel during June and July 2025. 'Today, Nigeria has actually become a net exporter of refined products. Before I came on the podium, I asked my people how many tonnes of PMS we have actually exported. From June beginning to date, we have exported about 1 million tonnes of PMS, within the last 50 days,' he said. This is a new milestone for the $19 billion, 650,000-barrel-per-day complex, which had hitherto concentrated its exports in West Africa since starting gasoline shipments in 2024. Dangote's young history with fuel exports Concerning Dangote's business of exporting fuel, a noteworthy breakthrough occurred in June 2025, when 90,000 metric tons of gasoline were sent to Asia, marking the refinery's first petrol export outside of West Africa. Mercuria, the trading powerhouse, was set to load the shipment on June 22. This move comes after an earlier April shipment of low-sulfur straight-run fuel oil (LSSR) to Singapore, indicating a deliberate push into Asian markets. The Dangote Refinery's global development has not stopped with fuel. It has also successfully exported two consignments of jet fuel to Saudi Aramco, the world's largest oil firm, and supplied nearly 1.7 million barrels of jet fuel to US ports via six boats. These moves underscore the refinery's growing stature and competitiveness in the global energy sector. This growth has begun to shake established markets. In January 2025, the Organization of Petroleum Exporting Countries (OPEC) stated that Dangote's oil push was beginning to disrupt Europe's refined fuel market. For decades, Europe maintained a profitable $17 billion annual gasoline export business to Africa. Experts now fear that Dangote's efforts may bring a stop to this long-standing trading partnership. As of April 2025, the refinery has more capacity than the top 10 biggest plants in Europe. Crude supply to Dangote On the supply side, the Dangote Refinery is making strategic moves towards self-sufficiency. According to Devakumar Edwin, Vice President of Dangote Industries, the refinery plans to rely solely on Nigerian crude by the end of 2025. In June, local producers supplied 53% of the crude processed, with the remaining 47% coming mostly from the United States. The factory now refines about 550,000 barrels of oil per day. Historically, the refinery has received crude from Brazil, Angola, Ghana, and Equatorial Guinea. However, greater cooperation among Nigerian oil producers, the federal government, and the refinery is expected to increase the share of locally sourced crude in the coming months. As the Dangote Refinery expands its reach and consolidates its supply chain, it is redefining Nigeria's role in global energy markets while simultaneously speeding Africa's economic self-determination.
Business Insider
11-07-2025
- Business
- Business Insider
Billions wasted on broken refineries - Africa's richest man tells his side of the story
Africa's richest man, and ironically, the owner of the continent's largest single train oil refinery, Aliko Dangote, has expressed concern about the Nigerian government's ability to manage a functional oil refinery. Dangote, who built the 650,000 bpd Dangote Refinery, spoke about his time trying to revive some of the state-owned refineries. Aliko Dangote expressed skepticism about the Nigerian government's capability to restore state-owned oil refineries. His personally constructed Dangote Refinery has a processing capacity of 650,000 barrels per day. He detailed the inefficiencies in managing refineries, referencing extensive financial mismanagement. Dangote, CEO of the Dangote group recently called into question the likelihood of the state-owned Port Harcourt, Warri, and Kaduna refineries being operational again. He did this at his own oil refinery, where he gave members of the Global CEO Africa from the Lagos Business School a tour of the facility while highlighting the ludicrous amount already spent on reviving the state-owned refineries. Dangote specified that his refinery, which he initiated after the country's 16th head of state, the late President Umar Yar'adua's cancelled his plans to acquire government refineries, now produces more than 50% of its output in the form of Premium Motor Spirit (petrol), while even government refineries only devote 22% of their output to this product. 'The refineries that we bought before, which were owned by Nigeria, were doing about 22 per cent of PMS. We bought the refineries in January 2007. Then we had to return them to the government because there was a change of government,' he stated. 'And the managing director at that time convinced Yar'adua that the refineries would work. They said they just gave them to us as a parting gift or so. And as of today, they have spent about $18bn on those refineries, and they are still not working. And I don't think, and I doubt very much if they will work,' he added. The Nigerian billionaire emphasized that the refineries' turnaround maintenance was similar to attempting to update a car that was manufactured forty years ago, even though technology had since evolved, as reported by the Punch. '(The turnaround maintenance) is like you trying to modernize a car that was built 40 years ago, when technology and everything have changed. Even if you change the engine, the body will not be able to take the shock of that new technology engine,' he elaborated. Dangote's statement corroborated the claims of Yar'adua predecessor, former president Olusegun Obasanjo last year on the refineries, two of which were closed when Mele Kyari, the former NNPC Group Managing Director, declared them open. The NNPC understood it was unable to handle the refineries, according to Obasanjo, who further stated that when he asked foreign oil corporations like Shell to run the facilities, they refused. Aliko Dangote and other Nigerians had invested $750 million to gain control of the refineries, but his successor Yar'adua annulled the agreement, according to Obasanjo. What Obasanjo had said 'So, why do we do this kind of thing to ourselves? NNPC knew that they could not do it, but they knew they could eat and carry on with the corruption that was going on in NNPC. When people were there to do it, they put pressure. In a civilized society, those people should be in jail,' Obasanjo had stated. Again, in January, Obasanjo said, 'I was told not too long ago that since that time, more than $2bn have been squandered on the refineries and they still will not work. 'If a company like Shell tells me what they told me, I will believe them. If anybody tells you now that it (the refinery) is working, why are they now with Aliko (Dangote)? And Aliko will make his refinery work; not only make it work, he will make it deliver.'
Business Insider
11-07-2025
- Business
- Business Insider
Africa's richest man doubts if Nigeria will ever have a working refinery again
Dangote, CEO of the Dangote group recently called into question the likelihood the state-owned Port Harcourt, Warri, and Kaduna refineries being operational again. He did this at his own oil refinery, where he gave members of the Global CEO Africa from the Lagos Business School a tour of the facility while highlighting the ludicrous amount already spent on reviving the state-owned refineries, as reported by the Punch. Dangote specified that his 650,000-capacity refinery, which he built after the late President Umar Yar'adua's administration abandoned his plans to acquire government refineries, now produces more than 50% of its output in the form of Premium Motor Spirit (petrol), while even government refineries only devote 22% of their output to this product. 'The refineries that we bought before, which were owned by Nigeria, were doing about 22 per cent of PMS. We bought the refineries in January 2007. Then we had to return them to the government because there was a change of government,' he stated. 'And the managing director at that time convinced Yar'adua that the refineries would work. They said they just gave them to us as a parting gift or so. And as of today, they have spent about $18bn on those refineries, and they are still not working. And I don't think, and I doubt very much if they will work,' he added. The Nigerian billionaire emphasized that the refineries' turnaround maintenance was similar to attempting to update a car that was manufactured forty years ago, even though technology had since evolved. '(The turnaround maintenance) is like you trying to modernise a car that was built 40 years ago, when technology and everything have changed. Even if you change the engine, the body will not be able to take the shock of that new technology engine,' he elaborated. Dangote's statement corroborated Obasanjo's claims last year on the refineries, two of which were closed when Mele Kyari, the former NNPC Group Managing Director, declared them open. The NNPC understood it was unable to handle the refineries, according to Obasanjo, who further stated that when he asked foreign oil corporations like Shell to run the facilities, they refused. Aliko Dangote and other Nigerians had invested $750 million to gain control of the refineries, but his successor Yar'adua annulled the agreement, according to Obasanjo. 'So, why do we do this kind of thing to ourselves? NNPC knew that they could not do it, but they knew they could eat and carry on with the corruption that was going on in NNPC. When people were there to do it, they put pressure. In a civilized society, those people should be in jail,' Obasanjo had stated. Again, in January, Obasanjo said, 'I was told not too long ago that since that time, more than $2bn have been squandered on the refineries and they still will not work. 'If a company like Shell tells me what they told me, I will believe them. If anybody tells you now that it (the refinery) is working, why are they now with Aliko (Dangote)? And Aliko will make his refinery work; not only make it work, he will make it deliver.'
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.
