The Digest:
Aliko Dangote, President of Dangote Group, has stated that his refinery will continue to reduce the price of petrol in Nigeria to directly compete with imported fuel. Speaking after a meeting with President Bola Tinubu, Dangote highlighted price reductions, smuggling challenges, and long-term investment goals as key drivers of his pricing strategy.
Key Points:
- Aliko Dangote announced his refinery will keep lowering petrol prices to compete with imports.
- The refinery recently reduced prices from ₦877 to ₦828 per litre at gantries.
- Dangote cited smuggling as a major issue due to Nigeria's prices being 55% lower than neighbors.
- He assured that diesel and petrol will remain sold at "very reasonable" prices as a long-term investment.
- The businessman praised President Tinubu's "Naira-for-Crude" policy as a win for Nigeria.
- He noted challenges in sourcing Nigerian crude due to premium pricing by international oil companies.
- Dangote Refinery has the capacity to supply 50 million litres of petrol daily to the domestic market.
- Plans are set to expand the refinery to 1.4 million barrels per day by 2028, making it the world's largest.
This pricing approach reflects a strategic play to cement domestic market dominance while gradually reshaping Nigeria's downstream energy landscape.
Sources: Premium Times, interview with State House correspondents.
