Dangote Refinery Absorbs ₦16 Billion Loss to Ensure Cheaper Fuel for Nigerians

The Dangote Petroleum Refinery has announced a significant reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, by ₦65 per litre, lowering it from ₦890 to ₦825 per litre. This strategic move aims to make fuel more affordable for Nigerians, even as the refinery absorbs an estimated loss of ₦16 billion to facilitate this price adjustment.

To ensure that consumers benefit directly from this reduction, the refinery has outlined a refund mechanism for marketers. Specifically, marketers who purchased over 200,000 metric tonnes of PMS at the previous higher price will receive a refund of ₦65 per litre. This initiative is designed to encourage marketers to pass on the cost savings to consumers promptly.

The refinery has also set new pump prices based on geographical zones to reflect the reduction:

Lagos: ₦860 per litre

South-West: ₦870 per litre

North: ₦880 per litre

South-South and South-East: ₦890 per litre

These prices are applicable at partner stations, including MRS, Heyden, and Ardova Plc (AP). The refinery has urged marketers to implement these new rates immediately and to sell any existing stock at the adjusted lower prices to qualify for the refund.

Consumers who encounter prices higher than the advertised rates are encouraged to report such instances to the Dangote Refinery, providing their purchase receipts to facilitate a full refund of the excess amount paid. This measure is intended to prevent exploitation and ensure that the benefits of the price reduction reach the end-users.

This initiative underscores the Dangote Refinery's commitment to alleviating the financial burden on Nigerians by making fuel more affordable, even at a substantial cost to the company.