Dangote Refinery has made a major announcement that has captured the attention of Nigerians nationwide. The refinery, which is Africa's first privately-owned oil refining facility, declared a reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, to N899.50 per litre. This move comes as a relief to many, especially during the festive season when transportation costs typically surge.
The decision to lower the petrol price from its previous rate of N970 per litre, set on November 24, is part of Dangote Refinery's strategy to provide much-needed financial relief to Nigerians.
The company aims to ease transport costs during the holiday period, a time when many people travel to be with family and friends. Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Group, emphasized this point in a statement, noting that the reduction is designed to alleviate the financial burden on consumers.
In addition to the price cut, Dangote Refinery introduced a special offer to further benefit consumers. For every litre of petrol purchased on a cash basis, consumers have the opportunity to buy an additional litre on credit. This offer is backed by a bank guarantee from Access Bank, First Bank, or Zenith Bank, providing an innovative way for consumers to manage their fuel expenses during the festive season.
The refinery's operations mark a pivotal shift in Nigeria's energy landscape. With a capacity of 650,000 barrels per day (BPD), Dangote Refinery is the largest single-train refinery in the world. It is fully capable of meeting 100% of Nigeria's refined petroleum product requirements, with a surplus available for export. This capability not only ensures a consistent supply of high-quality petroleum products but also positions Nigeria as a potential exporter of refined products, reducing the country's reliance on imported fuels.
Aliko Dangote, the founder and president/chief executive of the Dangote Group, has been a pivotal figure in this transformation. His vision for the refinery was to eliminate the chronic fuel shortages that have plagued Nigeria for years. By producing refined petroleum products locally, the refinery aims to stabilize petrol prices, reduce import costs, and make fuel more affordable for consumers. Energy expert Faith Nwadishi praised this initiative, highlighting its potential to strengthen Nigeria's economy.
The reduction in petrol prices is also a response to feedback from stakeholders, including the Independent Petroleum Marketers Association of Nigeria (IPMAN). In November, IPMAN called on Dangote Refinery to review its pricing strategy, citing higher prices compared to other suppliers. The recent price adjustment reflects the company's commitment to engaging with stakeholders and addressing their concerns.
Furthermore, the refinery's operations signify the end of Nigeria being a dumping ground for substandard and 'blended' imported products, which have posed significant risks to human health, machinery, and the environment. By ensuring access to premium quality petroleum products that are competitively priced, environmentally friendly, and engine-friendly, Dangote Refinery is setting new standards in the industry.
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