Dangote reduces fuel prices, unveils direct distribution plan amid industry disputes

The Dangote Refinery has announced a nationwide reduction in the pump price of Premium Motor Spirit (PMS), also known as petrol, as part of preparations to launch its much-anticipated direct fuel distribution initiative.

In a fresh price template released via its official X account on Friday, the $20 billion, 650,000-barrel-per-day refinery pegged its gantry price at N820 per litre, maintaining the same benchmark announced last month.

The refinery confirmed that its direct distribution scheme, which had been initially scheduled for August 15, will now officially commence on Monday, September 15, 2025.

The initiative will see Dangote Refinery deploy 4,000 compressed natural gas (CNG) trucks to deliver petrol and diesel directly to consumers across the country at zero logistics cost.

According to the new price breakdown, consumers in Lagos, Oyo, Ogun, Ondo, and Ekiti states will now pay N841 per litre, down from N860. In Abuja, Edo, Delta, Rivers, and Kwara states, the retail price has been adjusted to NN51 per litre, representing a N34 drop from the previous N885. This translates into savings of N19 in the South-West and N34 in Abuja, the South-South, and North-Central zones.

However, Dangote clarified that the price template is not binding on petroleum marketers and retailers, except for MRS and other official distribution partners.

The development comes amid an escalating dispute with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG). The union accused the refinery of reneging on earlier resolutions and has threatened to resume strike action.

Dangote Group, in response, reiterated that it respects workers’ voluntary union membership rights.

Energy analyst Dr. Olatunji Adeoye described the price cut as “a potential game-changer for consumers,” but warned that its impact depends on how widely retailers adopt Dangote’s template.

“If independent marketers do not align with Dangote’s revised pricing, consumers may not immediately feel the relief at filling stations. Regulatory clarity will be crucial in preventing price distortions,” Adeoye said.

On the logistics side, Engr. Folashade Ojo, a downstream operations consultant, praised the refinery’s plan to use CNG trucks.

“By eliminating logistics costs through CNG-powered trucks, Dangote is not only reducing pump prices but also promoting cleaner fuel use in distribution. This could set a new industry standard if properly implemented,” she noted.

But labor expert Comrade Musa Lawal cautioned that the unresolved standoff with NUPENG could derail the rollout.

“Industrial disputes at this critical stage could disrupt the supply chain. Dangote must engage sincerely with unions to ensure that the direct distribution scheme delivers its intended benefits to Nigerians,” Lawal warned.

The Dangote Refinery has announced a nationwide reduction in the pump price of Premium Motor Spirit (PMS), also known as petrol, as part of preparations to launch its much-anticipated direct fuel distribution initiative.

In a fresh price template released via its official X account on Friday, the $20 billion, 650,000-barrel-per-day refinery pegged its gantry price at N820 per litre, maintaining the same benchmark announced last month.

The refinery confirmed that its direct distribution scheme, which had been initially scheduled for August 15, will now officially commence on Monday, September 15, 2025.

The initiative will see Dangote Refinery deploy 4,000 compressed natural gas (CNG) trucks to deliver petrol and diesel directly to consumers across the country at zero logistics cost.

According to the new price breakdown, consumers in Lagos, Oyo, Ogun, Ondo, and Ekiti states will now pay N841 per litre, down from N860. In Abuja, Edo, Delta, Rivers, and Kwara states, the retail price has been adjusted to NN51 per litre, representing a N34 drop from the previous N885. This translates into savings of N19 in the South-West and N34 in Abuja, the South-South, and North-Central zones.

However, Dangote clarified that the price template is not binding on petroleum marketers and retailers, except for MRS and other official distribution partners.

The development comes amid an escalating dispute with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG). The union accused the refinery of reneging on earlier resolutions and has threatened to resume strike action.

Dangote Group, in response, reiterated that it respects workers’ voluntary union membership rights.

Energy analyst Dr. Olatunji Adeoye described the price cut as “a potential game-changer for consumers,” but warned that its impact depends on how widely retailers adopt Dangote’s template.

“If independent marketers do not align with Dangote’s revised pricing, consumers may not immediately feel the relief at filling stations. Regulatory clarity will be crucial in preventing price distortions,” Adeoye said.

On the logistics side, Engr. Folashade Ojo, a downstream operations consultant, praised the refinery’s plan to use CNG trucks.

“By eliminating logistics costs through CNG-powered trucks, Dangote is not only reducing pump prices but also promoting cleaner fuel use in distribution. This could set a new industry standard if properly implemented,” she noted.

But labor expert Comrade Musa Lawal cautioned that the unresolved standoff with NUPENG could derail the rollout.

“Industrial disputes at this critical stage could disrupt the supply chain. Dangote must engage sincerely with unions to ensure that the direct distribution scheme delivers its intended benefits to Nigerians,” Lawal warned.