Dangote Petroleum Refinery & Petrochemicals has confirmed that the price of Premium Motor Spirit (PMS) remains unchanged at N1,200 per litre. This decision comes despite growing concerns about potential volatility in the downstream petroleum market.
The refinery's commitment to maintaining its current pricing reflects its ongoing focus on ensuring a steady supply of refined petroleum products across Nigeria and the wider African market. This stability is crucial for consumers and businesses alike.
In March, Nairametrics reported that Dangote Petroleum Refinery had reduced its ex-depot price for PMS by N100, bringing the price down from N1,175 per litre to N1,075. The gantry price of petrol was also cut by N100 to N1,075 per litre, representing an 8.5 percent reduction from the previous rate. Automotive Gas Oil (diesel) also saw a price adjustment to N1,430 per litre, down N190 from N1,620 per litre.
These earlier changes followed several days of price increases, demonstrating the refinery’s responsive pricing strategy to market conditions. The current price stability highlights the refinery’s significant role in moderating fluctuations within the domestic fuel market.
Industry analysts note that the improved domestic refining capacity, particularly from Dangote Refinery, has helped stabilize petrol prices. This has prevented a potential spike to N1,500 per litre, which could have occurred amid global supply pressures stemming from international tensions.
Oil marketers had previously predicted that petrol prices might reach N1,200 per litre by Monday due to ongoing tensions in the Middle East. Market reactions are influenced by global crude oil prices, exchange rate pressures, and rising logistics costs. The Petroleum Products Retail Outlets Owners Association of Nigeria had warned that petrol prices could hit N2,000 per litre amid international supply disruptions.
Meanwhile, the African Export-Import Bank (Afreximbank) has announced its support for Dangote Group's ambitious expansion strategy, which aims to grow its turnover to $100 billion by 2030. This strategy includes increasing the capacity of the Dangote Petroleum Refinery from 650,000 barrels per day (bpd) to 1.4 million bpd.
The group also intends to quadruple its fertilizer production from 3 million tonnes per annum to 12 million tonnes per annum, positioning it as the world's largest producer of urea fertilizer. To achieve these continental ambitions, Dangote Group predicts it will require at least $40 billion in new investments over the next five years.
Afreximbank has already signed an agreement for a $2.5 billion facility, underwritten by the bank, as part of a $4 billion senior syndicated term loan in favour of Dangote Petroleum Refinery and Petrochemicals FZE. Aliko Dangote, President/Chief Executive of Dangote Industries Limited, highlighted the strategic value of the partnership, stating that Afreximbank believed in their vision when others were skeptical.
