In a bid to alleviate the burden of high fuel costs on Nigerians, Dangote Petroleum Refinery & Petrochemicals has announced a reduction in its Premium Motor Spirit (PMS) price from N890 per litre to N825 per litre.
The company also declared its commitment to refund customers who were charged above the newly adjusted rates by its key partners across Nigeria.
In a statement issued over the weekend, the refinery confirmed that it would refund N65 per litre on over 200,000 metric tonnes of PMS purchased at the previous rate of N890 per litre.
This refund, estimated to cost Dangote Refinery N16 billion, is intended to offset the impact of the price drop on its business partners while safeguarding consumers from inflated charges.
“The step, effective February 27, 2025, guarantees that none of our valued business partners will experience a loss due to the price change. More importantly, it ensures that the new, lower rate takes immediate effect nationwide for the benefit of the Nigerian people,” the statement read.
Under the new pricing framework, the approved rates per litre are set as follows: N860 in Lagos, N870 in the South-West, N880 in the North, and N890 in the South-South and South-East for MRS.
For Heyden and Ardova Plc (AP), the rates are N865 in Lagos, N875 in the South-West, N885 in the North, and N895 in the South-South and South-East.
With these adjustments, Dangote Refinery is saying no Nigerian should pay more than N900 per litre for PMS, regardless of their location.
In a bold step to ensure compliance, Dangote Refinery urged consumers who purchase fuel above the approved rates to report such cases with receipts for a full refund of the excess amount.
The company condemned any attempt by partners to exploit the situation by inflating prices, describing such actions as “unpatriotic and detrimental to the welfare of Nigerians.”
“It is unpatriotic and detrimental to the welfare of Nigerians for any party to purchase at the rate of N825 then sell to consumers at N945 or more per litre. This constitutes excessive profiteering, further burdening Nigerians for personal gain,” the statement added.
The refund policy is expected to impact a number of consumers, particularly those in regions where fuel prices have soared above the advertised rates.
By absorbing the N16 billion loss to facilitate the N65 per litre refund, Dangote Refinery aims to prevent undue hardship on consumers and maintain public confidence in its pricing strategy.
Industry analysts have lauded the move as a proactive step towards addressing the recurrent issue of price exploitation in the downstream sector. However, they caution that sustained reductions will depend on the refinery’s ability to manage operational costs without compromising supply volumes.
“This is a commendable move that shows a strong commitment to consumer welfare. However, the true test will be how long Dangote Refinery can sustain these reduced prices without incurring significant financial strain,” a Lagos-based energy analyst told Naijaonpoint.
Leave a Comment