Tag: Dangote refinery

  • Coalition urges Nigerians to support Dangote Refinery, calls for vigilance

    Coalition urges Nigerians to support Dangote Refinery, calls for vigilance

    A coalition of civic actors under the umbrella of the Coalition for Economic Liberation and Social Justice (CELSJ) has called on Nigerians to rise in support of the Dangote Refinery, describing it as a vital project for the country’s energy future.

    In a statement signed by its President, Comrade Godfrey Boma, after an emergency meeting in Abuja on Thursday night, the group urged citizens to remain vigilant and ensure that nothing disrupts the operations of the refinery.

    According to Boma, any setback to the refinery’s progress would amount to pushing Nigeria back into heavy dependence on imported fuel.

    He stressed that the refinery represents one of the most significant interventions aimed at boosting energy security, creating jobs, and reducing the burden on households.

    CELSJ also called on the federal government and security agencies to safeguard the operations of the refinery while ensuring that all agreements with relevant stakeholders are respected and implemented in line with extant labour laws.

    The coalition appealed for massive nationwide mobilisation to protect the refinery and secure the gains it has already brought to Nigeria’s economy.

    “This is a defining moment. Nigerians must come together to defend this refinery because it is our collective lifeline,” the group declared.

    “Barely forty-eight hours after the suspension of its strike, NUPENG has suddenly begun a new round of blackmail against the Dangote Refinery. We are reliably informed that a bribe of $5 million has exchanged hands between oil principalities and some compromised union leaders to frustrate the refinery’s operations,” Boma said.

    Read Also: NUPENG blocks loading in Dangote Refinery

    He added that the pattern of events showed a deliberate orchestration to force the refinery into endless disputes and delay its stabilisation, thereby pushing Nigeria back to dependency on imported fuel.

    “Let it be known that Nigerians will never allow a handful of profiteers to sabotage a refinery that has already begun reshaping the country’s energy future. The same forces that built fortunes off decades of importation rackets are the ones now using NUPENG to destabilise the industry. This is a direct attack on the Nigerian people, and it must not stand,” the coalition declared.

    The coalition urged Nigerians across all sectors to be vigilant, insisting that any attempt to destabilise the Dangote Refinery was tantamount to undermining national survival.

    “Every kobo spent importing fuel is a direct theft of jobs, a direct sabotage of growth, and a direct burden on the Nigerian household. The Dangote Refinery is one of the few interventions that has begun to break the chains of dependency, and no cabal or compromised union must be allowed to drag us back into darkness,” CELSJ said.

    The group further appealed to the federal government and security agencies not to allow “paid agents of the oil importation cartel” to hide under labour activism to weaken the refinery’s operations.

    “We call on the DSS, the Ministry of Labour, and all security agencies to monitor NUPENG’s leadership closely. Nigerians will not tolerate another season of strikes designed and paid for by corrupt oil barons. Those who pocketed bribes to undermine national interest must be exposed and prosecuted without delay,” the statement read.

    Boma called for massive nationwide mobilisation to protect the refinery against what he described as “internal enemies of progress.”

    “This is a defining moment. Nigerians must come out en masse to say no to the agents of oil slavery. We must defend this refinery because it is our collective lifeline. NUPENG and their sponsors must understand that the days of holding Nigerians hostage with imported fuel rackets are gone forever,” the group declared.

  • Dangote Refinery slashes pump prices

    Dangote Refinery slashes pump prices

    The Dangote Petroleum Refinery is set to begin the rollout of compressed natural gas (CNG)-powered trucks on Monday, 15th September, as part of its logistics-free distribution programme aimed at significantly reducing fuel prices across Nigeria.

    In a statement released by the company, the initiative will see the gantry price reduced to N820 per litre, with corresponding lower pump prices in several key states. Lagos and other South-Western states will see fuel retailing at N841 per litre, while Abuja, Rivers, Delta, Edo, and Kwara states will sell at N851 per litre.

    The first phase of the deployment will cover the Federal Capital Territory, Lagos, Kwara, Delta, Edo, Rivers and South West states, with nationwide expansion planned as additional trucks are delivered.

    This transition to CNG-powered transportation is expected to save the Nigerian economy over N1.8 trillion annually.

    READ ALSO: Asamoah Gyan accuses Osimhen of faking injury in World Cup qualifiers

    The move is designed to cut fuel distribution costs, reduce pump prices, and ease inflationary pressures.

    In particular, the initiative is expected to benefit more than 42 million micro, small and medium enterprises (MSMEs) by lowering energy costs and improving profit margins.

    Dangote Group is investing over N720 billion into the programme, which is also anticipated to revitalise dormant filling stations across the country. The project is expected to create numerous direct employment opportunities, including roles for truck drivers, filling station managers, and fuel attendants.

    The company has called on stakeholders, including fuel station operators, telecommunications companies, and large-scale fuel consumers to partner with the initiative to ensure its success and maximise its economic impact.

  • PEWAI hails Dangote Refinery for upholding workers’ rights, safeguarding economic stability

    PEWAI hails Dangote Refinery for upholding workers’ rights, safeguarding economic stability

    The Petroleum Workers Advancement Initiative (PEWAI), a coalition championing the welfare of oil and gas workers and Nigeria’s economic stability, has lauded Alhaji Aliko Dangote and the management of Dangote Refinery for respecting workers’ rights and averting a nationwide disruption following the suspension of a planned strike by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).

    In a statement on Wednesday, PEWAI President, Comrade Ebikeme Okorotie, praised the memorandum of understanding (MoU) signed on September 8 between Dangote Refinery, NUPENG, and other stakeholders as a decisive step toward strengthening industrial harmony and advancing national development.

    The MoU, endorsed by Sayyu Dantata, Managing Director of Dangote Group; Ogbugo Ukoha, Executive Director of Distribution Systems, Storage, and Retailing Infrastructure at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA); Benson Upah, Acting General Secretary of the Nigeria Labour Congress (NLC); and Nuhu Toro, General Secretary of the Trade Union Congress (TUC), effectively shelved the strike scheduled to begin September 8, 2025.

    Under the agreement, workers at Dangote Refinery and its petrochemical units are granted the freedom to unionise without fear of victimisation. The unionisation process is set to commence immediately and conclude between September 9 and 22, 2025.

    PEWAI described the resolution as a commendable show of responsible leadership by Dangote, adding that his commitment to upholding workers’ constitutional rights demonstrates a balance between employee welfare and Nigeria’s broader economic stability.

    “Dangote’s management has shown that it is possible to respect workers’ rights while simultaneously promoting economic growth,” Comrade Okorotie said. 

    “By engaging in dialogue, negotiating in good faith, and ensuring that no worker will be victimised, the Dangote Group has set a benchmark for industrial relations in Nigeria’s oil and gas sector.”

    The group also emphasised the national importance of the refinery, noting that any disruption in its operations could have significant repercussions on fuel supply, job security, and economic progress. 

    PEWAI warned NUPENG and other unions to exercise prudence in pursuing industrial action, stressing that Nigerians will be watching closely and will not allow any union to derail the ongoing progress in the economy being driven by Dangote’s refinery operations.

    “While we acknowledge the right of workers to unionise, this must be balanced with the wider responsibility to the nation,” Okorotie added. 

    “The refinery represents billions of naira in investment, thousands of jobs, and critical infrastructure. Any action that threatens its operations is an action that threatens all Nigerians.”

    PEWAI also urged other corporate players in the petroleum sector to emulate Dangote’s approach by combining respect for workers’ rights with responsible economic stewardship. 

    Read Also: Dangote Refinery slashes PMS price by N30

    According to the group, fostering industrial harmony is not only a legal and ethical obligation but also a catalyst for sustained growth and development.

    The coalition commended the roles of the NLC, TUC, and other stakeholders in facilitating the MoU, describing their involvement as critical to averting potential disruption and maintaining confidence in the petroleum sector.

    “Industrial disputes are inevitable in any dynamic economy, but the way they are resolved defines the health of the nation’s labour relations and economic trajectory. Dangote’s leadership, combined with the willingness of the union to engage in dialogue, has prevented a crisis and ensured that progress continues,” PEWAI said.

    The group further reiterated its call for all unions in the oil and gas sector to act responsibly, warning that while worker rights must be respected, they should not be pursued at the expense of citizens’ economic welfare or national development.

    “Dangote has shown that business leadership and national interest can coexist. We expect all stakeholders to maintain this path and for unions to exercise their rights with wisdom and patriotism,” Okorotie said.

  • Dangote Refinery slashes PMS price by N30

    Dangote Refinery slashes PMS price by N30

    Dangote Petroleum Refinery yesterday announced a reduction in the ex-depot (gantry) price of Premium Motor Spirit (PMS), commonly referred to as petrol, by N30.00. Until yesterday, the product which sold at N850 from the refinery will now sell at N820 per litre, effective immediately.

    Dangote Refinery in a statement explained that as part of its unwavering commitment to national development, the firm Dangote assures the public of a consistent and uninterrupted supply of petroleum products.

    “In line with our dedication to operational excellence and sustainable energy solutions, Dangote Petroleum Refinery will commence the phased deployment of 4,000 Compressed Natural Gas (CNG)-powered trucks for fuel distribution across Nigeria, effective August 15, 2025,” the statement read.

    In a related development, the Nigerian Labour Congress (NLC) has hailed the Dangote Petroleum Refinery as a transformative national asset, calling it a vital step in bridging Nigeria’s fuel supply gap, boosting employment, and restoring public confidence in the country’s industrial capacity.

    Speaking during a tour of the refinery and Dangote Fertiliser Limited, the Chairman, Nigeria Labour Congress (NLC), Lagos State chapter, Comrade Funmi Sessi, hailed the scale and strategic significance of the Dangote Group’s investments, stating that the projects are delivering tangible benefits to the Nigerian people.

     “Today, we have seen the massive Dangote Refinery project, as well as the fertiliser plant. We have also observed some of Dangote’s other investments in this axis. It is truly enormous and highly impressive,” Sessi said, noting that “what we have seen is a clear effort to bridge the gap in the availability of essential products in the country and to create job opportunities for Nigerians and others as well as industrialise the country.”

    The union acknowledged that following the Federal Government’s removal of petrol subsidies, Nigerians experienced an unprecedented surge in the cost of petrol. However, the entrance of Dangote Petroleum Refinery into the market helped to stabilise prices.

     “It wasn’t until Dangote came into the picture that we started seeing some relief. His intervention significantly crashed the escalated prices of PMS and other refined products. That’s a clear demonstration of private sector leadership,” she stated.

    The NLC made a direct appeal to the federal government to prioritise the sale of crude oil to the Dangote Refinery in naira, arguing that if the firm imports crude or purchase locally in dollars, then this will undermine the promise of lower fuel prices for ordinary Nigerians.

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     “This country has crude oil in abundance. So why is Dangote still being made to import crude or pay for it in hard currency?” the NLC queried. “If the government is truly committed to reducing fuel prices and supporting local refining, it must sell crude oil to Dangote in naira.”

    The union stressed that sourcing crude locally in local currency would significantly lower operational costs and, by extension, lead to a more sustainable reduction in fuel prices.

     “With a daily capacity of 650,000 barrels, this refinery can serve Nigeria and even the West African sub-region. We also seen big ships taking fertilisers to other countries. The government must maximise”

    The NLC lauded Aliko Dangote for achieving a fully functional, world-class refinery capable of meeting both domestic and regional demands for refined petroleum products.

     “When government-owned refineries failed, one man stepped up. Aliko Dangote didn’t just make promises; he fulfilled them. He has proven that Nigeria can not only refine its own products but also meet international quality standards,” she added.

    The union also hailed the refinery’s production of Euro 5-compliant fuel, which features significantly reduced sulphur content, aligning with international environmental standards and boosting Nigeria’s credibility in the global petroleum market.

     “This is the kind of pride we want to see — a Nigerian company producing at global standards. It is changing the narrative and elevating Nigeria’s position globally. It’s time the government supports and maximises the capacity of this asset”, the NKC said.

    In addition to fuel, the NLC noted the group’s fertiliser company, which is already exporting to international markets. It urged the government to leverage these capabilities to enhance food security and reduce dependence on imported agricultural inputs.

    Vice President, Oil and Gas, Dangote Industries Limited, Devakumar Edwin, said the planned deployment of 4,000 Compressed Natural Gas (CNG)-powered trucks to support the distribution of refined petroleum products across Nigeria is aimed at ensuring that the benefits of domestic refining and the resulting reduction in fuel prices are fully passed on to Nigerian consumers.

    Edwin stated that the introduction of the CNG-powered fleet is a strategic step to reduce logistics costs in fuel distribution — a major factor in the final pump price.

     “The deployment of these 4,000 CNG-powered trucks will help us pass down the benefits of domestic refining and the reduction in product prices to consumers,” Edwin said. “The aim is to support logistics and make distribution more efficient, not to displace any existing players in the sector.”

    He further explained that the use of CNG-powered trucks, in addition to being more environmentally friendly, will significantly reduce transportation expenses, ultimately making refined products more affordable for Nigerians.

    Edwin also highlighted the wider impact of Dangote’s industrial ventures, particularly in stimulating competition and growth in key sectors of the Nigerian economy. He cited the Dangote Sugar Refinery as an example, noting that its success paved the way for other companies, including BUA Group and Nigerian Flour Mills to invest in sugar production.

     “We’ve seen it with sugar, and we’ve seen it with cement. The success of Dangote Cement led to the emergence of players like BUA, Mangal, and the expansion of Lafarge,” he said. “In the same way, the success of this refinery will drive the emergence of more private refineries in Nigeria.”

    According to him, the Dangote Refinery is not only helping to address Nigeria’s long-standing reliance on imported refined products but is also setting the pace for a sustainable and competitive refining industry that will benefit the broader economy.

    He noted that the Dangote Group has become a nurturing ground for Nigerian engineers, scientists and technicians, many of whom have gone on to work as expatriates in various countries. He assured the labour leaders of the company’s steadfast commitment to human capital development, staff welfare, and the overall wellbeing of the economy, emphasising that Aliko Dangote is a patriotic Nigerian fully dedicated to the nation’s progress.

  • Dangote Refinery’s CNG trucks arrive

    Dangote Refinery’s CNG trucks arrive

    Dangote Petroleum Refinery & Petrochemicals has commenced the receipt of 4,000 compressed natural gas(CNG) powered trucks, an integral part of its fuel distribution logistics programme set to start on August 15. The firm noted that the initiative aims to transform the fuel distribution landscape within the country by reducing logistics costs and enhancing supply efficiency for customers.

    The fleet of fuel tankers represents a significant capital investment estimated at N720 billion. This expenditure underscores the company’s commitment to pioneering innovative solutions as the world’s largest single-train refinery continues to expand its operational capabilities.

    The first consignment of trucks recently departed Apapa Port and was formally received at the refinery site in Ibeju-Lekki by Vice-President of Oil and Gas at Dangote Industries Ltd, Devakumar Edwin.

    Speaking on the rollout, Group Chief of Branding and Communication, Dangote Industries Limited, Anthony Chiejina, said: “the commencement of the initiative marks a groundbreaking development in Nigeria’s fuel distribution network. Given the complexities inherent in global supply chains, the delivery of these specialised CNG-powered tankers is indeed commendable. This approach ensures that we maintain operational efficiency while scaling up the fleet.

    “Our unwavering commitment to this programme is reflected in our ongoing collaboration with key regulatory bodies and stakeholders to facilitate seamless deployment. We believe this initiative will significantly lower distribution costs and improve fuel availability for our customers nationwide.”

    Read Also: Dangote refinery plans 1.6m barrels fuel storage tanks in Namibia

    He added that over the next six weeks, the refinery expects at least sixty shiploads of these trucks to arrive in the country.

    This innovative distribution model is expected to catalyse efficiency gains across Nigeria’s downstream petroleum sector, fostering greater transparency, reducing transportation bottlenecks, and ultimately enhancing energy security for the nation.

    In June, Dangote Petroleum Refinery revealed a landmark investment exceeding N720 billion to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks across Nigeria for the nationwide distribution of petroleum products. This initiative is projected to save Nigerians over N1.7 trillion annually in fuel distribution costs.

    The privately owned refinery will absorb more than N1.07 trillion every year in fuel logistics expenses. The scheme is expected to significantly benefit over 42 million Micro, Small, and Medium Enterprises (MSMEs) by lowering energy costs and improving profitability.

    This strategic programme is part of Dangote’s broader commitment to eliminating logistics bottlenecks, enhancing energy efficiency, promoting environmental sustainability, and supporting Nigeria’s economic development. Lower fuel distribution costs will reduce production expenses, alleviate inflationary pressures, and stimulate overall economic growth.

    The initiative is also expected to revitalise dormant filling stations, creating over 15,000 direct jobs across the logistics value chain, including positions for drivers, station managers, and attendants at the new CNG stations.

    Moreover, the refinery said that the programme would help curb cross-border smuggling of petroleum products while supporting a more efficient and environmentally friendly distribution system.

    Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), Tosin Coker, commended the move:

    “Dangote Group’s acquisition of 4,000 CNG trucks is not only impressive in scale but also highly strategic,” he said. “It signals to the market that CNG is no longer a distant prospect but a current, practical solution to high energy costs, emissions, and supply chain challenges. PCNGI regards this as a milestone achievement in our efforts to accelerate gas-powered transport adoption.”

  • Fed Govt lauds Dangote Refinery’s engineering excellence

    Fed Govt lauds Dangote Refinery’s engineering excellence

    The Federal Government has commended the Dangote Petroleum Refinery for its outstanding engineering achievements and its significant investment in developing young Nigerian talent.

    The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, lauded the Refinery for its dual focus on world-class infrastructure and exceptional investment in human capital during an official visit to the facility in Lagos.

    Speaking during a tour of the refinery, the Minister expressed admiration not only for the vast scale of the physical infrastructure, describing it as “bricks, mortar, and pipelines of extraordinary ambition” but also for the calibre of talent operating it.

    “We are not just appreciating the scale of the infrastructure: the bricks, mortar, and pipelines, we are equally impressed by the investment in human capital.

    It is deeply inspiring to see young Nigerians, many of whom have never left the country, operating world-class equipment with remarkable skill and professionalism.”

    Oduwole, who is also a university don, highlighted the significance of such a development in the context of national capacity-building. “As a lecturer myself, I take great pride in witnessing their excellence in engineering. It is nothing short of exceptional,” she added.

    She also praised Aliko Dangote, Africa’s richest man and the visionary behind the project, for his continued commitment to industrial transformation in Nigeria. “Listening to Alhaji Dangote speak about this project is always a source of inspiration. This is not just a refinery—it is a bold statement of what is possible. This is Lagos, Nigeria, and there is truly nowhere else in the world with a facility of this kind at this scale.”

    Vice President, Oil & Gas at Dangote Industries Limited, Edwin Devakumar, highlighted the world-class capabilities of the 650,000 barrels per day (bpd) Dangote Petroleum Refinery, during a presentation to the Minister.

    Read Also: Dangote refinery slashes petrol ex-depot price to ₦840 per litre

    According to Devakumar, the refinery produces Euro-V quality petrol, diesel, jet fuel, and polypropylene, meeting 100 per cent of Nigeria’s domestic demand for refined petroleum products, with surplus available for export. He emphasised that the refinery incorporates the latest technologies to ensure environmental compliance while delivering clean, globally competitive fuels.

    He noted that the refinery includes a fully self-sufficient marine terminal for crude oil offtake and product loading, as well as an integrated steam and power generation system with a 435MW capacity—enough to supply the entire electricity demand of the Ibadan Electricity Distribution Company, which covers  Oyo, Ogun, Osun, Kwara, and Ekiti.

    “We are one of the very few companies in the world to have executed both a petroleum refinery and a petrochemical complex directly as an EPC contractor,” he said. “We sent engineers for overseas training and employed around 60,000 skilled Nigerians during construction, offering them valuable experience in various aspects of construction, testing, and commissioning.”

    Devakumar added that many of the Nigerian engineers, technicians, and others trained by the company are now working as expatriates not just across Africa, but as far afield as the United Arab Emirates, contributing to Nigeria’s foreign remittance inflow.

    The Dangote Petroleum Refinery and Dangote Fertiliser Limited have been widely commended for their commitment to hiring and nurturing Nigerian engineers. Most recently, the Nigerian Content Development and Monitoring Board (NCDMB), led by its Executive Secretary, Engr. Felix Omatsola Ogbe, praised the company for its efforts in developing young engineering talent. Similarly, the League of Engineering Bodies in Nigeria, including the Nigerian Society of Engineers (NSE), the Nigerian Academy of Engineering (NAE), the Association of Consulting Engineering in Nigeria (ACEN), and the Council for the Regulation of Engineering in Nigeria (COREN), expressed admiration during a visit to the facilities. The delegation lauded the active engagement of Nigerian engineers in the construction, commissioning, and operation of the plants.

    The Dangote Petroleum Refinery, the largest single-train refineries globally, has been hailed as a game-changing project set to enhance Nigeria’s self-sufficiency in refined petroleum products, reduce import dependence, and stimulate economic growth.

  • Dangote refinery plans 1.6m barrels fuel storage tanks in Namibia

    Dangote refinery plans 1.6m barrels fuel storage tanks in Namibia

    Nigeria’s Dangote petroleum refinery will construct storage tanks in Namibia to hold at least 1.6 million barrels of gasoline and diesel to supply refined fuel to southern Africa, two sources told Reuters on Wednesday. The move underscores the refinery’s ambition to dominate fuel supply in Africa and beyond, potentially reshaping energy trade flows in the region and boosting access to refined products for southern African nations.

    The 650,000 barrels per day refinery, built at a cost of $20 billion by Africa’s richest man Aliko Dangote, started operations last year and has been ramping up production and seeking new markets.

    Read Also: ‘Dangote Refinery’s fuel distribution scheme to cut inflation, boost jobs’

    The sources, who were briefed on the development, said the storage tanks would be used to supply gasoline and diesel to Botswana, Namibia, Zambia and Zimbabwe. Dangote was also considering supplying fuel to southern Democratic Republic of Congo, the sources said. A Dangote spokesperson did not respond to a request for comment. It was not immediately clear how much the project would cost, but the second source said construction of the storage tanks would begin shortly in the port city of Walvis Bay.

    A Namibia Ports Authority official confirmed the plans and said the storage tanks would be housed within the Walvis Bay harbour. A source said last month that a Dangote petrol cargo was heading to Asia, the first time the refinery was selling gasoline outside the West Africa region. Dangote refinery says at full capacity, the plant would produce enough to meet demand in Nigeria, which has sharply cut imports of processed fuels, and export the rest.

  • ‘Dangote Refinery key to lower inflation’

    ‘Dangote Refinery key to lower inflation’

    Dangote Petroleum Refinery has been identified as crucial to reducing inflation in Nigeria, according to a report by the Financial Derivatives Company (FDC) Limited think tank.

    In its recently published Lagos Business School (LBS) Executive Breakfast Presentation for July, the think tank noted that Dangote Refinery has become the key mechanism for reducing petrol prices and lowering transport fares.

    The report, presented by the Managing Director and Chief Executive Officer of FDC, Bismarck Rewane, added that Dangote’s uniform pricing policy and credit facilities to marketers represent a game changer that will revolutionise Nigeria’s downstream oil sector by cutting logistics costs.

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    “Dangote’s uniform pricing and credit to marketers is a game changer and a catalyst for more private sector investment. The initiative is set to revolutionise Nigeria’s oil downstream business by cutting logistics costs and by spending over N1.7 trillion annually,” it stated, emphasising that Dangote Refinery’s fuel distribution strategy, which involves deploying 4,000 Compressed Natural Gas (CNG) trucks nationwide, will lower pump prices, curb inflation, and support over 42 million MSMEs (Micro, Small and Medium Enterprises).

    “With 4,000 CNG-powered trucks delivering refined products directly to the doorsteps of end-users, the move will lower pump prices, curb inflation, and support over 42 million MSMEs.”

    The report stressed that the Nigerian economy is experiencing a classic oil price paradox: when global oil prices rise, the government benefits financially and the naira strengthens, yet there is little advantage for the average person. Conversely, when oil prices fall, consumers rejoice at lower petrol prices while the government suffers financially.

    On the international front, the report observed that the global economy has swung from exaggerated fears of market volatility and uncertainty to the irrational exuberance of momentum traders and speculators, who are profiting by exploiting the anxieties of those fixated on maintaining the status quo.

  • Dangote refinery slashes petrol ex-depot price to ₦840 per litre

    Dangote refinery slashes petrol ex-depot price to ₦840 per litre

    The Dangote Petroleum Refinery has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, lowering it from ₦880 to ₦840 per litre.

    The adjustment was confirmed on Monday night by the Group’s spokesperson, Anthony Chiejina.

    Chiejina said, “PMS price has been reduced from N880 to N840 per litre effective 30th June.”

    The price cut comes just weeks after the refinery raised the product’s cost due to a global surge in crude oil prices triggered by the Israel-Iran conflict and the uncertainty surrounding the bombing of the three Iranian nuclear facilities by the US President Donald Trump.

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    During that period, crude oil prices rose to nearly $80 per barrel with experts already projecting it to reach $130 per barrel depending on Iran response.

    However, previous reports following a ceasefire in the conflict, have it that marketers were anticipating a change in pricing starting this week.

    Following Dangote’s move, its distribution partners—including MRS, Heyden, and AP—are expected to adjust their pump prices in line with the new rate.

    This is coming barely a week after the National Petroleum Company (NNPC) Limited increased its prices of petrol at its retail outlets in Lagos, Abuja and Ibadan by at least N35 to N45 per liter.

  • Putting Dangote to the sword?

    Putting Dangote to the sword?

    So much for the wailing and gnashing of teeth in the aftermath of Dangote Refinery’s planned ‘intrusion’ into that last bastion of the inefficiency in the fuel supply and distribution chain; the talk about the new wave of disruption set to be loosed upon the segment is no longer whether or not it is unprecedented, but about the impact of the new measures will have in a terrain that has hitherto thrived in institutional lethargy, plain opportunism and organised subversion.

    I refer hereto the plans by Dangote Refinery to start direct distribution of petroleum products to filling stations and other stakeholders across the country particularly those in the critical sectors of aviation, manufacturing, and telecommunications – not excluding of course the so-called independent marketers. Not known to settle for half measures, the Dangote initiative, set to commence on August 15 will see the behemoth roll out some brand new 4,000 CNG trucks in furtherance to this.

    Surely, if Nigerians had prayed for that day when a band of unscrupulous predators would be put on notice that their perfidious game was over, they seem to have got more than they could have wished for in the Dangote plan! 

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    The deployment has, expectedly, raised questions about logistics dominance, fair competition, and pricing control in the downstream sector. Specifically, marketers under the aegis of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have since concluded that the plan would distort the market. Drawing attention to their earlier warning about the refinery’s intentions to dominate the downstream sector, the body fears that “the company may leverage its market power to fix prices, limit competition, and exploit consumers, much like it has done in other sectors.”

    It went on to note that the development “could lead to a massive shutdown of filling stations across Nigeria, resulting in widespread job losses. The introduction of 4,000 brand-new Compressed Natural Gas-powered tankers…poses a significant threat to the livelihoods of thousands of truck drivers and owners.

    “While CNG trucks may offer a lower cost of transporting petroleum products, this shift could lead to widespread job losses in the industry”, it noted.

    Dangote Refinery, it also added, “might be deploying a price penetration strategy, offering fuel at low prices to seize market share and force smaller players out, ultimately threatening the survival of independent operators”. In their opinion, Dangote refinery should focus on refining and exporting fuel rather than competing directly in the retail distribution chain!

    I believe that the body deserve more pity than understanding. This concerns (or is it recommendations), coming from a group long fattened by the regime of ‘equalisation’ under which uncountable billions of naira are doled out in bridging claims to fuel transporters is, to put it mildly, gratuitous and rich!

    Most certainly, I do understand why the Dangote plan comes close to a final death knell in an industry known to mistake rent for enterprise. For while their cash cow, the Petroleum Equalisation Fund (PEF) may have been certified as dead and buried, at least officially, under the current regime of liberalisation; it remains a measure of how deeply ingrained that psychology of rent is, particularly among the players of yore that some, among them, still fantasise about possible return of that ancien regime under which transporters collected subsidies to maintain fuel price parities long acknowledged as existing only on paper! Truly, old habits die hard.

    By the way, how about the tyranny of tankers drivers, whose all-powerful union could decree, at the drop of hat, that their workers embark on strike on just about anything ranging from a mild skirmish with police on the highways to frustrations with the electronic call up (e-call up) system at the loading bays is finally nearing its end? Who wouldn’t want their chokehold on Nigerians broken?

    Even among the hordes cringing at the budding ‘monopolistic dominance’, it seems unlikely that any, would crave for a return to the fraudulent, organised chaos of yore!

    So much for the labelling therefore; the choice, really, is hardly one between the so-called monopolistic dominance’ as some have chosen to frame the Dangote Refinery’s ‘intrusion’ into the fuel distribution segment on the one hand, and the fading past characterised by organised chaos foisted by the players in the absence of a virile rail infrastructure, functional pipelines and other ancillary distribution infrastructure on the other. To that extent, current concerns, though legitimate, matters little to Nigerians already ill-served by their predatory distribution arrangement; at least so long as fuel flows at the pump and at a price that seems fair enough!

    Rather than the strange charge that the development bodes ill for the market, I believe Nigerians should ordinarily be interested in seeking answers to the far more profound issues provoked the development. Issues about the state of the depots and the products receiving bays, the sprawling pipelines criss-crossing the entire country and countless critical ancillaries that once defined the downstream sector, all of which are now currently in ruins with no plans to resuscitate them. What of the railways that once served to transport bulk products into the hinterland? Billions of dollars of loans after, the sector not only remains subpar, but a recurrent item on electioneering manifestoes!  To imagine that the whiners – the same cartel that has contributed in no small measure to the sorry states which the industry has found itself, whose activities have undermined the very notion of competition, and whose understanding of competition comes to bear only when it suits them; that they have suddenly become drum majors of equitable rules in the market must be the revelation, the joke of the century!

    Yes, there is little doubt that Dangote’s 4,000 trucks present a looming threat to the club of indulgent and patently short-sighted players in the same way that the cartel of fuel importers have been whining to no end about the dominance of Dangote  Refinery hurting their market! The challenge is to engage; not one of a fruitless call to arms. Call it a price to pay at this stage of the industry’s steady evolution. How I love the way a certain Obasa Sanmi put out the matter in his social media handle. “Please Dangote; come up with a scheme like that for the distribution of cement. The middlemen are the profiteers. It’s time to chase them out!”

    Surely, Nigerians understand that. If anything, it seems the way to go. Most certainly, it is a far cry from the chant which comes basically to putting Nigeria’s leading entrepreneur to the sword, and this for no crime other than putting his money where his mouth is!