Dangote Refinery To Absorb N16 Billion Loss, Ensuring Cheaper Fuel For Nigerians.
Dangote Petroleum Refinery & Petrochemicals has announced it will absorb a staggering N16 billion (£7.6 million) loss to provide cheaper fuel across the country. The refinery revealed it will refund marketers N65 per litre on Premium Motor Spirit (PMS), commonly known as petrol, ensuring that the benefits of a recent price reduction trickle down to consumers.
The announcement follows the refinery’s decision last week to slash its ex-depot price—the rate at which fuel is sold to marketers—from N890 to N825 per litre, effective 27 February 2025. This latest initiative, confirmed in a statement released over the weekend, underscores Dangote’s commitment to supporting Nigeria’s economic recovery and aligns with President Bola Tinubu’s Renewed Hope Agenda, which aims to bolster the nation’s economy.
“This is part of our ongoing efforts to ensure Nigerians are the primary beneficiaries of the price reduction,” the refinery stated. “By refunding N65 per litre on over 200,000 metric tonnes of PMS purchased at the previous gantry price of N890 per litre, we are guaranteeing that the new, lower rate takes immediate effect nationwide for the benefit of the Nigerian people.”
The move has been hailed as a significant step towards energy affordability in Nigeria, a country where fuel prices have long been a contentious issue. With the new ex-depot price set at N825 per litre, Dangote Refinery expects retail prices to stabilise at no more than N900 per litre nationwide, offering much-needed relief to households and businesses alike.
The refinery’s decision to absorb the N16 billion loss demonstrates its determination to prioritise consumers over profit. It has also called on marketers to pass on the savings to the public, condemning any attempts at “excessive profiteering” that could undermine the initiative. “We are working with our partners to ensure good quality and affordable fuel for Nigerians,” the statement added, urging marketers sourcing stock from Dangote to reflect the new pricing at the pumps.
In a further show of commitment, Dangote has promised to refund customers who purchase petrol above advertised rates from its key partners—Ardova Plc (AP), Heyden, and MRS—across Nigeria. Consumers are encouraged to report such instances with their receipts to claim a full refund of the excess amount.
The price reduction and refund scheme come at a pivotal time, with Ramadan approaching and many Nigerians seeking respite from rising living costs. Dangote has positioned the initiative as a strategic effort to provide “essential relief” during the holy month while supporting President Tinubu’s broader vision of making Nigeria self-sufficient in refined petroleum products.
“We remain dedicated to supporting Nigeria’s economic growth and ensuring every Nigerian has access to affordable, high-quality energy solutions,” the refinery concluded. “This initiative is one of many ways Dangote Petroleum Refinery & Petrochemicals continues to contribute to a prosperous and sustainable future for our country.”
As the largest single-train oil refinery in the world, located in Ibeju-Lekki, Lagos State, Dangote continues to flex its influence in Nigeria’s energy sector. With this latest development, it is clear the refinery is not just refining oil—it is refining hope for millions of Nigerians.
