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Dangote Petroleum Refinery has reduced its gantry price for Premium Motor Spirit (PMS), or petrol, by N25 per litre, lowering the ex-depot rate from N799 to N774. The refinery informed marketers late Monday that the adjustment takes immediate effect nationwide.
“This is to notify you of a change in our PMS gantry price from N799 per litre to N774 per litre,” the company said in a circular to its distribution partners.
According to the refinery, the move is intended to bolster the competitiveness of locally refined fuels. Imported PMS from Lome, Togo, currently lands at around N793 per litre, making Dangote’s domestic price notably lower. Analysts suggest the reduction may encourage marketers to increase stocks of Nigerian-produced petrol while easing retail costs for consumers.
The adjustment coincides with Dangote Group’s wider continental investment drive. Aliko Dangote recently visited Burundi to explore business opportunities, meeting with President Evariste Ndavishimye at the Presidential Palace. The industrialist was accompanied by former Nigerian President Olusegun Obasanjo.
Dangote described the trip as both economic and diplomatic. “Our focus really is investing heavily in the African continent, not anywhere else, so Burundi is part and parcel of that African region,” he said following the discussions.
Two technical teams—one from Burundi and another from Dangote Group—have been established to identify priority sectors and develop concrete investment proposals. Areas highlighted include power generation, infrastructure, agriculture, cement production, and mineral exploration. Dangote stressed that the objective is to create mutually beneficial ventures that can drive sustained growth.
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Sources in Burundi’s government said talks centered on industrialisation, logistics, and energy, which the administration regards as critical to the country’s long-term economic strategy. Observers described the engagement as a potential turning point for Burundi, signaling its viability as a destination for large-scale African investment.
The PMS price cut also reflects a strategic push to consolidate market share domestically. Dangote Refinery’s Lekki facility, which began commissioning in 2023, is designed to produce up to 650,000 barrels per day of petroleum products, including petrol, diesel, and aviation fuel. Market insiders suggest that a lower ex-depot price may drive wider adoption of locally refined petrol and reduce reliance on imports.
Industry experts note that the Nigerian downstream sector has faced persistent challenges from currency volatility, fluctuating international oil prices, and regulatory shifts. “Dangote’s pricing strategy is likely aimed at making domestic fuels more attractive, while supporting retailers in passing on lower prices to consumers,” said an analyst who spoke on condition of anonymity.
By offering a price below the cost of imported fuel, the refinery could encourage marketers to stock more Nigerian petrol, gradually reducing the dominance of foreign products in the market. The move may also strengthen the refinery’s negotiating position with distributors and retail chains.
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Observers highlight that Dangote’s visit to Burundi is part of a broader pattern of cross-border investments across Africa. The industrialist has previously targeted cement, sugar, and energy sectors in other countries, consistently emphasizing partnerships that combine private investment with local capacity building.
Officials in Burundi described the discussions as wide-ranging, focusing on infrastructure development, power projects, and industrial clusters. Mining opportunities were also flagged, with Burundi’s underdeveloped mineral sector viewed as a promising area for long-term investment.
Dangote’s dual approach—lowering domestic petrol prices while pursuing regional industrial investments—illustrates a strategy that seeks to strengthen both the home market and broader African operations. Analysts suggest this could enhance Nigeria’s energy security while positioning the Dangote Group as a central player in continental industrial growth.
The refinery’s pricing decision comes amid efforts to deepen local refining capacity and reduce dependence on imports. Combined with strategic investments abroad, the approach may provide both economic leverage at home and influence in emerging African markets.
Burundian officials expressed optimism about potential collaborations, framing the engagement as an opportunity to attract industrial expertise, create jobs, and boost infrastructure development. Observers say the partnership could enhance Burundi’s regional profile and integrate it into a network of major African industrial ventures led by the Dangote Group.
