Business

Pump Price Cuts Driven by Pricing, Not Tariff — Dangote

Published

10 months ago

November 17, 2025

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Dangote Petroleum Refinery has dismissed claims that the recent fall in petrol pump prices was triggered by the Federal Government’s suspension of a 15 per cent import tariff, insisting the adjustment was driven solely by its own downward review of Premium Motor Spirit prices.

In a statement on Monday, the company said downstream marketers reacted directly to its revised ex-depot prices, and that the tariff policy did not influence the decision.

“We lowered our PMS gantry price from N877 to N828 per litre, and our coastal price from N854 to N806. The downstream marketers adjusted their prices accordingly. This move was strictly market-driven and not connected to the tariff reversal,” the refinery stated.

Refinery Capacity & Strategic SignificanceSince starting production, Dangote Refinery has significantly reshaped Nigeria’s fuel market. With a nameplate capacity of 650,000 barrels per day (bpd), it has become a major force in reducing Nigeria’s dependence on imported petrol.

The refinery is in the process of upgrading: Dangote recently announced plans to raise capacity from 650,000 bpd to 700,000 bpd, and is also working on a longer‑term expansion to 1.4 million bpd. This expected scale-up would make it one of the largest single-site refineries globally.

Why the Price Cut MattersHistorically, petrol pricing in Nigeria has been highly exposed to global factors, international crude prices, freight costs, foreign-exchange swings, and import duties.

By cutting its own ex-depot price, Dangote is asserting more control over the domestic price structure, reducing volatility tied to imports.

“Dangote’s price cut is a landmark event. For the first time in decades, the pricing power in Nigeria’s fuel market is shifting from international dynamics to local production.

”A refinery executive (who requested not to be named) added that the November 6 adjustment is part of a longer-term plan to stabilise supply and build market trust: “We’re not just lowering prices.

We are building confidence in Nigeria’s refining capacity. Every adjustment is carefully made to balance sustainability for us and affordability for consumers.

”Market Impact: The price review immediately reset the industry pricing floor. Within 24 hours, several major marketers reduced their pump prices, a response that analysts describe as “pure market competition.

”Oil sector analyst Grace Onuoha said:

“Dangote effectively forced a realignment. Marketers naturally had to follow to stay competitive. This isn’t about policy shifts, it’s market dynamics.

”Countering the Tariff NarrativeDangote’s statement is a direct rebuttal to widespread speculation that the 15% import tariff reversal triggered the pump price drop.

The company insists its price cut came first and was the real catalyst. The temporary tariff waiver only applies to imported PMS, while Dangote’s product is refined locally.Boosting Fuel Security.

By leveraging its own refining capacity, Dangote says it is helping to shield Nigeria from global supply disruptions and foreign-exchange risks. The refinery frames its pricing policy as part of a broader strategy toward energy self-sufficiency.

“As more Nigeria households and businesses rely on locally refined fuel, the nation becomes less vulnerable to international shocks,” the company said in its statement.

Energy analyst Dr. Tunde Aluko agrees: “This is what Nigeria has needed for decades, a domestic refinery with real capacity and market influence. Dangote is filling that crucial role.”

What This Means for Consumers

Many industry observers view the November 6 price cut as a turning point.

For the first time, a local refiner, not global import dynamics, is visibly driving fuel prices in Nigeria.

Fuel station owner Uche Eze, who operates in Abuja, said, “This is a positive development. Local refining means more predictable prices, better supply, and a buffer against forex volatility.”

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Business

Emir Sanusi mobilises Kano People “Buy Dangote Refinery’s Shares Now”

“I speak as the Emir of Kano; I would like my people to be owners of this company . I do not want us to be left behind in the capital markets. I do not want us to be left behind in financial inclusion. So this is the time and this is the opportunity,” said Sanusi.

Published

2 days ago

September 17, 2026

OCHEFA

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The Emir of Kano, Muhammadu Sanusi II, has praised Kano-born businessman Aliko Dangote and encouraged residents to secure a stake in the Dangote Refinery and Petrochemical Plc before the public offering closes.

The royal father made the call on Thursday during the Dangote Refinery IPO investor roadshow in Kano, urging residents to invest only disposable income they can afford to lock away for the long term.

His words, “Do not take your children’s school fees and put in shares. Do not sell the house that you live in and put in shares.

“Buy what you can afford, 10,000, 20,000, 30,000 – what you can afford to set aside for some time, set it aside.

And if you look at the fundamentals of the economy, over time you can be assured that this investment will grow, and you will not regret it.

He also advised prospective investors to choose a long-term approach rather than buying shares in anticipation of quick profits.

“And I’m not talking about someone who will buy 5,000 shares and want to sell tomorrow and believe he will get 10,000. No, I’m talking about you have some money, put it in, leave it there for some time, and just watch your money grow.

Forget about it for some time. You’ll be surprised in five years the 10,000 Naira you invest today, what it will be,” Sanusi said.

Business

Nigerians Speak As Petrol sells N1,500/litre

A visit to filling stations showed that motorists were purchasing the commodity for between N1,450 and N1,500 per litre, against the former price of N1,350.

Published

2 days ago

September 17, 2026

OCHEFA

31 Views

NIGERIANS across the 36 states and the Federal Capital Territory – Abuja, are complaining bitterly as the pump prices of Premium Motor Spirit, popularly known as petrol, is selling for as much as N1,500 per litre nationwide .

According to the Prices across states tracked by the PUNCH, the cost of the commodity has continued to rise nationwide, selling for as high as N1,500 in many states.

In Yobe State, residents reported that petrol was selling for between N1,500 and N1,520 per litre at some filling stations in Damaturu, the state capital.

Similarly, a tricycle rider in the state capital, Musa Ibrahim, said he buys the commodity for about N1,500 per litre at some Nigerian National Petroleum Company filling stations.

Also speaking, a civil servant, Lawan Garba, said some filling stations were selling petrol at an even higher price.

“I am buying petrol at N1,520 per litre in some petrol stations,” Garba said.

In Kano State, petrol was selling for between N1,460 and N1,500 per litre at most filling stations in the metropolis. The increase has forced some vehicle owners to park their vehicles, while commercial tricycle operators, popularly known as “yan’ adaidaita sahu”, have also increased their fares by about 50 per cent, depending on the distance.

The operators who used to charge N200 for a short distance now collect N300, while they charge between N500 and N700 for longer distances.In Sokoto State, petrol prices rose to between N1,465 and N1,500 per litre in the metropolis.

Checks by our correspondent showed that the product had risen from the previous price of N1,365 per litre.

At some filling stations, including AA Rano, Shafa and Total, petrol was sold for N1,465 per litre, while major marketers sold it for between N1,470 and N1,500 per litre.

In Borno State, a litre of petrol was selling for N1,500 at filling stations in Maiduguri, the state capital.

A motorist, Ishaku Curutsi, confirmed to our correspondent that he bought petrol from Matrix filling station for N1,500 per litre on Wednesday. “I bought it this morning, and a litre at Matrix cost 1,500,” he said.

In Taraba State, the price of petrol had risen to N1,500 per litre, with motorists and commuters reporting prices of between N1,500 and N1,700 per litre at some filling stations.

The development is expected to further increase the cost of transportation and movement of goods within the state.In Zamfara State, a litre of petrol was selling for N1,500 in Gusau, the state capital, and its environs.

A visit to filling stations showed that motorists were purchasing the commodity for between N1,450 and N1,500 per litre, against the former price of N1,350.

At Danmarina filling station, motorists were seen purchasing the commodity amid complaints about the increase. One of the motorists, who gave his name as Musa Idris, said the current price was putting pressure on consumers.

• Culled from the PUNCH