The Dangote Petroleum Refinery has quietly reduced the effective price of Premium Motor Spirit (PMS), commonly known as petrol, by offering a ₦10 rebate per litre to customers after loading, bringing the actual cost to ₦825/litre — despite the official price remaining at ₦835/litre.
According to industry sources on Monday, this rebate is granted post-evacuation of the product from the refinery, making it a covert price cut that allows marketers to retail the product at between ₦830 and ₦835 per litre, thereby undercutting importers and private depots still selling at higher prices.
A source familiar with the operation explained:
“The Dangote refinery has started giving a refund on its products. It’s not an official reduction yet, but paid back after marketers buy products from them.”
This move follows a series of price reductions by the refinery, including a ₦45 per litre drop last month from ₦880 to ₦835, which was attributed to the resumed implementation of the Naira-for-Crude agreement with local refiners.
Efforts to obtain an official comment from Dangote Group spokesperson Anthony Chiejina were unsuccessful as of press time.
By subtly lowering its effective petrol price, Dangote is intensifying competition within the downstream sector, pressuring importers and depot operators struggling with foreign exchange challenges.
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