Dangote Refinery reduces PMS product price to N899.50k per liter

Dangote Petroleum Refinery has announced a price reduction for its Premium Motor Spirit (PMS) product, effective immediately, to N899.50k per liter.

According to the Diaspora Digital Media (DDM), the information was disclosed on Thursday morning, in a statement signed by the Group’s Chief Branding and Communications Officer, Mr. Anthony Chiejina.

The company said the price was cut to give Nigerians a better relief before the holidays.

The Dangote Refinery, earlier on November 24, reduced the price of its product to N970 per liter.

“This price reduction aims to alleviate transportation expenses for individuals during the festive season,” according to the statement.

“As an additional incentive, Dangote Petroleum Refinery is offering consumers the opportunity to purchase an extra litre of fuel on credit for every litre purchased with cash.”

Chiejina said, “Starting today, our petrol costs N899.50 per litre at our truck loading gantry or SPM.

“And, as a bonus, if you pay cash for a litre, you can get another litre on credit, thanks to a bank guarantee from Access Bank, First Bank, or Zenith Bank.”

“The refinery is committed to ensuring that Nigerians have access to premium petroleum products that are priced competitively, safe for the environment, and engine-friendly.

About Dangote Refinery

^{The Dangote Refinery, situated in Lekki, Nigeria, is a state-of-the-art oil refinery owned by the Dangote Group.}

^{It was officially inaugurated on May 22, 2023.}

^{Upon reaching full operational capacity, the refinery is expected to process approximately 650,000 barrels of crude oil per day, solidifying its position as the world’s largest single-train refinery.}

^{The total investment in the project exceeds $19 billion.}

In September 2013, Nigerian businessman Aliko Dangote revealed preliminary plans for the refinery, announcing that he had secured approximately $3.3 billion in financing for the project.

Initially, the refinery’s estimated cost was around $9 billion, with the Dangote Group investing $3 billion and the remainder covered by commercial loans. Production was slated to commence in 2016.

In March 2014, the Dangote Group announced the award of a contract to Engineers India Limited for project management consultancy and engineering, procurement, and construction management services for the refinery and polypropylene plant.

Major structural construction began in July 2017, with the refinery expected to be completed by late 2018.

The project’s total cost was estimated at $15 billion, with $10 billion allocated for the refinery, $2.5 billion for the fertilizer factory, and $2.5 billion for pipeline infrastructure.

On December 7, the Dangote Refinery received its inaugural shipment of 1 million barrels of Agbami crude oil, delivered via the Supersuez tanker OTIS using the Single Point Mooring system.

As of January 2024, the refinery commenced production of diesel fuel and aviation fuel A1.

Notably, the Dangote Refinery is capable of meeting 100% of Nigeria’s oil demands, with surplus products available for export

On June 26, 2024, a minor fire broke out at the Dangote Refinery, with footage capturing smoke and flames emanating from a section of the plant.

The operator issued a statement assuring that the incident had no significant impact.

In May 2024, Aliko Dangote announced that the refinery would reach a production capacity of 500,000 barrels per day within two months.

Due to insufficient domestic oil production, the refinery would continue to import oil from the United States, with Mr. Dangote stating, “We can’t wait.”

The refinery’s spokesman concurrently revealed plans to list the Dangote Refinery on both the London Stock Exchange (LSE) and the Nigerian Stock Exchange (NSE) in Lagos.

In July 2024, Aliko Dangote extended an offer to sell the Dangote Refinery to the Nigerian National Petroleum Corporation Limited amidst allegations of monopolistic practices.

In October 2024, the NNPC stopped buying petrol exclusively from Dangote Refinery, allowing other marketers to purchase petrol directly from the refinery.

The NNPC used to buy petrol from Dangote Refinery at ₦898.78 per litre and sell it to marketers at ₦765.99 per litre, covering a subsidy of almost ₦133 per litre.

Now, marketers have to buy petrol directly from Dangote Refinery and sell it at cost price, adding their own markup, which has led to higher prices.

Situated on a expansive 6,180-acre site at the Lekki Free Trade Zone, Lekki, Lagos State, the refinery boasts an unparalleled crude oil supply system.

Leveraging the world’s longest sub-sea pipeline infrastructure, which stretches 1,100 kilometers, the refinery will create a substantial 135,000 permanent jobs in the region once fully operational.

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