Dangote refinery to absorb N16bn loss by refunding N65 per litre to oil marketers

Rahmotullah LawalDangote Petroleum Refinery has announced plans to refund oil marketers who purchased premium motor spirit (PMS) at rates higher than the advertised prices from any of its key partners.

In a statement over the weekend, the refinery said its partners include AP (Ardova Plc), Heyden, and MRS Oil across Nigeria.

On February 26, the refinery announced a slash in its ex-depot price of PMS, also known as petrol, to N825.Dangote refinery said it will absorb a N16 billion loss by refunding N65 per litre to marketers, ensuring Nigerians benefit from cheaper petrol.

The refiner confirmed that it will refund N65 per litre on over 200,000 metric tonnes of PMS purchased by marketers at the old gantry price of N890 per litre before the new rate of N825 per litre was introduced.

“The step, effective February 27, 2025, guarantees that none of our valued business partners will experience a loss due to the price change,” the statement said.“More importantly, it ensures that the new, lower rate takes immediate effect nationwide for the benefit of the Nigerian people.”

‘MARKETERS SHOULD PASS ON NEW PRICING BENEFITS TO CUSTOMERS’The Dangote refinery said oil marketers sourcing stock from its partners should pass on the benefits of the new pricing to consumers at the retail level.

“It is both unpatriotic and detrimental to the welfare of Nigerians for any party to purchase at a rate of N825 per litre and then sell to consumers at N945 or more per litre,” the company said.

“This constitutes excessive profiteering, further burdening Nigerians for personal gain.“Dangote Refinery, in its effort to ensure good quality and affordable fuel for Nigerians, is working with its partners to make this price accessible.

The company said affected oil marketers should report to Dangote refinery with their receipts for a full refund of the excess amount.

“The approved rates per litre are as follows: MRS: N860 in Lagos, N870 in the South-West, N880 in the North, and N890 in the South-South and South-East; Heyden and AP: N865 in Lagos, N875 in the South-West, N885 in the North, and N895 in the South-South and South-East,” Dangote refinery said.

With the new gantry price set at N825 per litre, Dangote refinery said it capped PMS prices at a maximum of N900 per litre nationwide while committing to supplying high-quality, eco-friendly petrol.

The Dangote refinery added that it will ensure transparent pricing, quality products, and timely supply to guarantee energy security and economic growth, aligning with President Bola Tinubu’s renewed hope agenda.