Dangote Refinery Slashes N10 off Petrol Prices for Customers

• Dangote Petroleum Refinery is refunding marketers N10 per litre after product loading, effectively reducing the ex-depot petrol price
• The rebate allows marketers to sell petrol at a lower rate to Nigerians buying from their filling stations nationwide
• The price adjustment is part of Dangote’s strategy to dominate the fuel market amid ongoing petrol imports

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Dangote Petroleum Refinery has begun issuing a N10 per litre rebate to oil marketers who buy at least 2 million litres of its Premium Motor Spirit (PMS) or petrol from its facility.

The decision effectively reduces the ex-depot price from N835 to N825 per litre.

While the refinery’s publicly announced ex-depot price remains at N835 per litre, Punch reports that the refund effectively brings the cost down to N825.

A source familiar with the arrangement told reporters:

“Marketers are receiving a rebate after purchase, which allows them to remain competitive on pricing at their retail outlets.”

The discount has enabled downstream marketers buying from the refinery to retail petrol within a lower price band of N827 to N830 per litre.

The development is set to create more headaches for petrol importers who will now have to struggle to beat the new prices.

Dangote reduces petrol prices

The latest move in what industry analysts describe as an aggressive pricing strategy by the refinery, which now supplies more than half of Nigeria’s petrol market, Petroluemprice reports.

In April, Dangote reduced its ex-depot price twice in one week, slashing it by N45 from N880 to N835 per litre after the federal government reinstated a naira-for-crude oil swap deal with local refiners.

A marketer who doesn't want to be named said:

“The rebate is Dangote’s way of offering competitive pricing without triggering an official price change that could ripple through the sector."

Efforts to obtain a formal response from Dangote Group spokesperson Anthony Chiejina were unsuccessful at the time of filing this report.

4 easy steps to buy Dangote petrol

Recently, the Dangote group announced 4 easy steps to become a petrol distributor in Nigeria.

• Step 1: Customer sends an email to: groupcommercialops@dangote.com
• Step 2: Customer receives registration guidelines, a link, and due diligence forms to complete.
• Step 3: Successful customers will receive a Dangote Refinery registration PIN and a notification for a notarised NDA form.
• Step 4: Customer receives a distributorship appointment letter confirming their registration.

Dangote replies to marketers over monopoly claims

Earlier, Legit.ng reported that Dangote Refinery has debunked claims by oil marketers that it cannot meet local fuel demand.

DAPPMAN’s Executive Secretary, Olufemi Adewole, said the 650,000 bpd-capacity refinery cannot meet Nigerians' now reduced petrol consumption needs.

He argued that marketers have been importing fuel to sustain their operations.

The refinery’s officials disclosed that the facility has enough fuel to meet local demands and for export.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng