The Dangote Group has announced a reduction in the price of its Premium Motor Spirit (PMS), lowering it to N970 per liter from its previous rate of N990 per liter.
This adjustment comes as part of the refinery’s effort to support Nigerian consumers and marketers amid rising fuel price tensions. The announcement was made in a statement by Anthony Chiejina, the Group’s Chief Branding and Communications Officer, on Sunday.
Chiejina explained that this price reduction reflects the refinery’s commitment to offering competitive pricing while maintaining premium product quality.
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He stated: “Dangote Petroleum Refinery has effected a reduction in the prevailing price of its Premium Motor Spirit (PMS) from N990/liter to N970/liter for the marketers. As the year comes to an end, this is our way of appreciating the good people of Nigeria for their unwavering support in making the Refinery a dream come true.”
The statement also reassured consumers of the quality of Dangote’s PMS, highlighting its environmentally friendly and sustainable properties. Chiejina added that the refinery is determined to ramp up production to meet domestic fuel consumption needs, reducing fears of supply shortages.
“While the refinery would not compromise on the quality of its petroleum products, we assure you of best quality products that are environmentally friendly and sustainable,” he said.
“We are determined to keep ramping up production to meet and surpass our domestic fuel consumption; thus, dispelling any fear of a shortfall in supply.”
The price reduction comes amidst ongoing tensions between Dangote Refinery and some marketers over the pricing of petrol. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) criticized the refinery’s initial price of N990 per liter, arguing that importing PMS could be more cost-effective. PETROAN’s National Public Relations Officer, Joseph Obele, called for competition in the downstream sector to avoid monopolistic practices.
“The pricing from Dangote Refinery at N990 was inconsiderate, and we have finalized arrangements with foreign refinery partners to import high-quality PMS at a lower cost,” he said.
Obele refuted allegations from Dangote Refinery that PETROAN was planning to import substandard products, asserting that all products would meet regulatory standards.
However, Dangote Group countered these claims, asserting that significantly lower prices often indicate compromises in product quality or connections to oil theft. The company maintained that its products adhere to global regulatory standards, offering premium unleaded gasoline with 10ppm sulfur—a far superior quality compared to the 1,000ppm sulfur typically found in many imported fuels.
Kelvin Emmanuel, an energy and financial analyst, weighed in on the pricing debate, noting the quality gap between Dangote’s PMS and lower-cost imports.
He remarked: “The difference between Dangote selling at N970 and importers landing at N971 is significant. While they are landing substandard petrol of more than 1k ppm for sulphur, he’s selling premium unleaded gasoline of 10ppm sulphur that is accepted by regulators all over the world.”
Emmanuel likened the quality disparity to the contrast between luxury experiences, comparing a vacation in Bali to visiting a local destination (Oxbow Lake in Yenegoa), with far fewer amenities.
Dangote Refinery’s price reduction is seen as a strategic move to ease marketer concerns and foster stronger relationships within the sector. The Independent Petroleum Marketers Association of Nigeria (IPMAN) recently reached an agreement to lift petroleum products directly from Dangote’s facility, signaling improved collaboration.
The price adjustment also aligns with the refinery’s broader goal of addressing domestic fuel demands and reducing Nigeria’s dependency on fuel imports. However, industry analysts caution that Dangote Refinery’s competitive edge in quality and sustainability will need to be balanced with affordability to ensure long-term consumer and marketer support.