Nigerians to Get Discount as Dangote Petroleum Refinery Partners Oil Companies to Slash Petrol Price

• Heyden Petroleum, Ardova Plc, and Dangote Petroleum Refinery have joined forces to ensure that Nigeria has access to affordable petroleum
• This followed the financial assistance provided by President Bola Tinubu's crude-for-naira swap proposal, which encouraged the corporations
• the action followed the example set by MRS Oil Nigeria Plc, which had previously entered into a similar agreement with Dangote Refinery

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Dangote Petroleum Refinery, Heyden Petroleum and Ardova Plc have partnered to guarantee Nigeria's access to reasonably priced Premium Motor Spirit (petrol).

According to a statement released by the Dangote refinery on Thursday, the businesses signed a bulk purchase arrangement with the refinery after being encouraged by the financial relief offered by President Bola Tinubu's crude-for-naira swap plan.

“This strategic move is designed to ensure a steady supply of petroleum products at affordable prices, further stabilising the nation’s fuel market and enhancing energy security for consumers,” the statement read partly.

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The business claims that the move was in line with the precedent set by MRS Oil Nigeria Plc, which had already signed a comparable contract with Dangote Refinery.

To address the long-standing problem of price differences between states, MRS Oil recently reduced its fuel rates to N935 per litre across all of its stations nationally.

According to the statement, Ardova and Heyden will be able to guarantee a steady and dependable supply of petroleum products from the biggest single-train refinery in the world thanks to the bulk purchase deal with the Dangote refinery.

This will assist consumers nationwide by guaranteeing a steady supply of fuel at affordable costs.

Ardova Plc recently emphasized in a statement that this deal will create a more competitive atmosphere in Nigeria's downstream oil and gas industry.

The statement claims that although Ardova has been a significant off-taker from the Dangote refinery since its founding, the new framework is anticipated to formalize and fortify the two businesses' collaboration, resulting in long-term advantages for both.

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“This framework will see Ardova Plc offtake a full slate of petroleum products from the refinery. While Ardova Plc has been a significant off-taker from the refinery since its inception, this new framework will institutionalise a more robust relationship between the two companies to further enhance the emerging competitive landscape in the downstream oil and gas industry in the country.

“The partnership with the Dangote refinery is poised to have a transformative impact on Nigeria’s oil and gas market. By ensuring a stable and affordable supply of fuel products in the over 1,000 retail outlets of the two companies, the agreement will help to alleviate the recurring issue of fuel scarcity that has long plagued Nigeria,” the company maintained.

According to the Dangote refinery, which started operations in 2024, it has already significantly contributed to resolving the issues associated with fuel scarcity.

Dangote explains decision to reduce petrol price

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Legit.ng reported that Africa’s richest man, Aliko Dangote, said that the recent reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, to N899.50 per litre at the Dangote refinery’s loading gantry was primarily driven by market dynamics.

On December 19, the Dangote refinery reduced its ex-depot petrol price from N970 to N899.50 per litre, which led to competition within the downstream sector.

Additionally, Dangote Industries announced a partnership with MRS Petrol stations to sell petrol at N935 per litre across its retail outlets nationwide, earning praise from Nigerians.

Source: Legit.ng