Dangote Refinery Drives Down Fuel Costs, Ensures Holiday Stability

The Dangote Petroleum Refinery has pledged to maintain a steady and reliable supply of Premium Motor Spirit (PMS) and Automotive Gas Oil (diesel) across Nigeria.

With a daily output of over 45 million litres of petrol and 25 million litres of diesel, the refinery now exceeds the country’s domestic consumption. According to Anthony Chiejina, Group Chief Branding and Communications Officer at Dangote Industries Limited, the company is working closely with regulators and distribution partners to ensure efficient nationwide delivery.

He emphasized that the refinery’s capacity not only meets local demand but also strengthens energy security and reduces dependence on imports.

The increase in local fuel production has helped stabilize the naira by reducing foreign exchange outflows and boosting inflows. This has contributed to a drop in petrol prices from an average of ₦1,030 per litre in September 2024 to between ₦841 and ₦851 in September 2025. Diesel prices have also declined significantly, falling from ₦1,700 to around ₦1,020 per litre. Chiejina noted that these developments support the economy and ease the financial burden on consumers.

He defended the recently introduced tariff policy, describing it as a necessary measure to protect domestic industries from unfair competition and product dumping. He warned that dumping undermines industrial growth, causes job losses, and reduces government revenue. Chiejina urged the government to strengthen enforcement mechanisms to prevent the influx of substandard petroleum products, which have historically discouraged investment in Nigeria’s manufacturing sector.

He commended President Bola Ahmed Tinubu for approving the tariff policy, calling it a bold move to revitalize the downstream oil and gas industry. He said the decision reflects a commitment to creating a stable and investor-friendly environment that supports local production and enhances energy security. Chiejina cautioned that failure to protect local refiners could expose Nigeria to large-scale dumping from countries with excess production capacity, which would harm domestic industries and undermine government policies aimed at economic stability.

He called on industry stakeholders to align with the government’s vision for a self-sufficient energy sector and prioritize national interests. The Dangote Refinery, equipped with advanced technology and infrastructure, is expected to significantly reduce Nigeria’s reliance on imported fuel, stabilize supply chains, and support long-term economic growth.

Aliko Dangote, President of Dangote Industries Limited, assured Nigerians that petrol prices will remain stable during the festive season, despite global market fluctuations. He emphasized the company’s commitment to uninterrupted fuel supply throughout Christmas and New Year. Since beginning petrol production in September 2024, the refinery has played a key role in eliminating fuel scarcity and long queues at filling stations, especially during peak periods. The Direct Delivery Scheme introduced by the refinery has helped lower logistics costs and improve market efficiency.

Compared to neighboring West African countries, where petrol prices range from $1.20 to $2.00 per litre, Nigeria’s average price of $0.60 per litre highlights the refinery’s impact on affordability and supply reliability.