Aliko Dangote, President of Dangote Industries Limited, has explained that the recent reduction in the price of Premium Motor Spirit (petrol) to N899.50 per litre at the Dangote refinery was driven by market dynamics. In an interview featured in an Arise TV documentary, Dangote emphasized the importance of protecting both the company’s interests and its $20bn investment in the refinery.
On December 19, 2024, Dangote refinery reduced its ex-depot price from N970 to N899.50 per litre, prompting similar price adjustments from the Nigerian National Petroleum Corporation (NNPC), which lowered its price to N899. This led to a partnership with MRS Petrol stations to sell petrol nationwide at N935 per litre.
Dangote highlighted the significance of the refinery for Nigeria’s economy, noting that it would reduce the country’s dependency on imported petroleum products, which currently consume 40% of foreign exchange. He emphasized that foreign exchange is heavily impacted by petroleum imports and that reducing imports would help retain funds within the country.
Addressing criticism, Dangote stated that despite facing scrutiny, his motivation was patriotism and creating a legacy for Nigeria, rather than personal wealth. He reflected on his investment, noting that a $1bn contribution from NNPC is insignificant in comparison to the $20bn total cost of the refinery.
He also refuted claims that NNPC had assisted with $1bn during a liquidity crisis, calling the statement false and labeling it as “nonsense.”
Meanwhile, Devakumar Edwin, Vice President of Dangote Industries, revealed that the refinery is currently refining 350,000 barrels of crude per day, with a full capacity of 650,000 barrels.
