Dangote Takes Major Step to Reduce Petrol Prices Across Nigeria

• Dangote Refinery plans to subsidise part of the cost of transporting petrol from its Lekki refinery to different parts of Nigeria
• The company is deploying more trucks to reduce regional differences in petrol prices, especially in distant northern markets
• Dangote says the initiative aims to make petrol prices more uniform across locations such as Sokoto, Kano and Calabar

Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.

The Dangote Petroleum Refinery and Petrochemicals FZE has announced plans to reduce differences in petrol prices across Nigeria by taking on part of the cost of transporting its products from its Lekki facility to distant markets.

The move comes as differences in petrol prices persist across the country, with transportation expenses contributing significantly to the higher cost of products in parts of northern Nigeria.

Dangote to subsidise petrol transportation costs

Edwin Devakumar, Vice President of Dangote Petroleum Refinery, disclosed the plan during a media engagement with senior editors at the refinery complex on Friday.

He said the company was deploying more trucks and subsidising transportation costs to ensure that motorists across the country do not face significant variations in petrol prices based solely on their location.

According to Devakumar, the initiative is designed to expand the distribution of Dangote petrol nationwide while reducing the financial burden associated with transporting the product over long distances.

He said the company wanted to achieve a situation where petrol prices would be broadly similar in locations such as Sokoto, Kano and Calabar.

“We are now actually trying to equalise the price, whether you want to buy in Sokoto, whether you want to buy in Kano or buy in Calabar. The price should be the same,” he said.

“That is why we brought all these trucks, so we can even subsidise the transport and ensure that there is a uniform price and distribution throughout the country.”

Company targets wider nationwide distribution

Devakumar said the impact of the initiative was already becoming noticeable, adding that Dangote Refinery would continue working to extend its reach to more parts of Nigeria.

He explained that addressing transportation expenses was central to the company's strategy of making its products more accessible across the country.

“One thing is, we are even trying to make it further impact by taking the products all over the country and solving the transportation cost,” he said.

The executive also maintained that petrol prices in Nigeria remained relatively low compared with those in some neighbouring countries.

He pointed to the price differences between Nigeria and other countries along the West African coast, particularly amid the current challenges affecting fuel markets in the region.

Transport costs drive regional petrol price gaps

The Dangote executive's comments highlight transportation as one of the major factors contributing to differences in petrol prices between regions.

With the refinery located in Lekki, moving petrol to distant markets in northern Nigeria can add significant logistics costs to the final pump price.

By subsidising part of those expenses and increasing the number of trucks available for distribution, Dangote Refinery is seeking to narrow the price gap and make its petrol available more uniformly across the country.