Dangote Refinery has commenced its first retail sale of petrol, pricing it at N935 per litre, the lowest rate currently in the country.
It is the first instance of a fuel marketing firm selling below the prices set by the state-run Nigerian National Petroleum Corporation (NNPC).
The move follows months of tension between Dangote Refinery and NNPC. Since starting production earlier this year, Dangote had accused the NNPC of attempting to sabotage its operations by refusing to supply crude oil to its refinery or buy its refined products. Instead, the NNPC opted for imported petrol.
While the NNPC denied the allegations, the competition between the two entities escalated. Initially, Dangote reduced its loading price from N990 to N970. This week, the company further slashed its loading price to N899, while the NNPC reduced its retail rate from N1060 to N1040, signalling adjustments as Nigerians prepare for the holiday season.
Dangote announced on Saturday a partnership with MRS to begin downstream operations, offering petrol at N935 per litre starting Monday.
“To ensure this price reduction reaches the end consumer, we have signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre,” Dangote said in a statement on X (formerly Twitter).
The discounted price has already launched in Lagos and will expand nationwide from Monday. Dangote also called on other marketers, including NNPC Retail, to join efforts to provide Nigerians with high-quality petrol at affordable prices.
The company attributed its ability to lower prices to the government’s October decision to allow it to purchase crude oil in naira rather than dollars.
“The Dangote Refinery is for the benefit of Nigeria and Nigerians,” the statement read. “We will continue collaborating with value chain players to deliver high-quality petrol that is good for vehicles, health, and the pockets of Nigerians.”
Learn More
MRS Oil Nigeria Plc, formerly Texaco Nigeria Plc, is chaired by Sayyu Dantata, Aliko Dangote’s brother.
Discover more from Pluboard
Subscribe to get the latest posts sent to your email.