Emmanuel OchayiDangote Refinery has expanded its fuel distribution network by partnering with Optima Energy. This new addition complements its existing partnerships with MRS Nigeria, Ardova PLC, and Heyden. The move is expected to improve fuel availability and price stability across Nigeria.
Since the refinery began operations, competition among fuel marketers has increased, resulting in lower fuel prices for consumers. The refinery’s latest partnership aims to further stabilise the supply chain and enhance affordability.
Join our WhatsApp ChannelFuel Price Adjustments Benefit Consumers
In February, Dangote Refinery made two significant price reductions in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol. The first reduction was by N60 per litre at the beginning of the month, followed by another N65 per litre decrease. This brought the price down from N890 to N825 per litre.
READ ALSO: Dangote Refinery To Absorb Marketers’ N16bn Loss To Ensure Cheaper Fuel For Nigerians
According to the company, the price cut was aimed at easing the financial burden on Nigerians, particularly during the Ramadan season. The move also aligns with President Bola Ahmed Tinubu’s economic recovery initiatives.
A company statement noted, “This strategic price adjustment is intended to ease the financial burden on Nigerians while also supporting economic recovery efforts.”
Petrol Prices at Different Stations
Following Dangote Refinery’s price reductions, fuel prices vary at different retail stations distributing its products.
- At MRS stations, Dangote petrol is sold at N860 per litre in Lagos, N870 per litre in the South-West, N880 per litre in the North, and N890 per litre in the South-South and South-East.
- At Ardova Petroleum (AP) stations, prices are slightly higher, with N865 per litre in Lagos, N875 in the South-West, N885 in the North, and N895 in the South-South and South-East.
- Heyden stations sell at the same rates as AP, offering petrol at N865 in Lagos, N875 in the South-West, N885 in the North, and N895 in the South-South and South-East.
- Optima Energy, the newest distributor, will maintain the same pricing structure as Heyden stations.
NNPCL Follows Dangote Refinery’s Lead
Following Dangote Refinery’s fuel price reduction, the Nigerian National Petroleum Company Limited (NNPCL) responded by announcing its own price cut. On Monday, NNPCL lowered its petrol price from N920 to N860 per litre, bringing it in line with some of the rates offered by Dangote Refinery distributors.
The reduction in petrol prices by both Dangote Refinery and NNPCL has intensified market competition, providing relief for consumers. The increased affordability of fuel is expected to have a positive impact on transportation and overall economic activities in the country.
Impact of Dangote Refinery Fuel Distribution Expansion
The expansion of Dangote Refinery fuel distribution is expected to improve fuel accessibility across Nigeria. With more distribution partners, petrol supply is likely to become more consistent, reducing the risk of scarcity. The increased competition among marketers also ensures that fuel prices remain competitive.
The refinery’s efforts to stabilise the market have been welcomed by consumers and industry stakeholders. Many believe that the growing number of distribution partners will lead to better efficiency and lower costs in the long run.
As fuel distribution improves, Nigerians are hopeful that the refinery’s operations will continue to create a more competitive and consumer-friendly market.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
