KEY POINTS

• Dangote responds to discount petrol by market driven decisions.
• Shows refinery’s role in lessening import forex reliance.
• Makes reaffirmation of commitment to economic transformation and legacy.

Petrol prices have been reduced because of market dynamics, says Aliko Dangote, President, Dangote Industries Limited.

Dangote also spoke in an Arise TV documentary, saying the decision to cut ex-depot price of PMS to N899.50 per litre showed the company’s effort to keep its multibillion dollars investments safe.

‘The market is what the price reduction is a response to,’ Dangote said. “It’s the stance I have to take, it’s a $20 billion refinery and I’m not going to stand by and watch our interests and investments be threatened.”

A refinery to transform Nigeria’s oil industry and the economy

But Dangote said the 650,000 barrels per day refinery will restructure Nigeria’s oil sector and end the pressing need to import petroleum products, an outlay that cost the nation $22 billion in recent years.

According to statistics, about 40 percent of that demand is filled from petroleum product imports. ”This will help us reduce imports in order to preserve our forex reserves,’ said he.

This was also part of the Dangote refinery’s effort not only to cut petrol prices but the initiative saw it partner with MRS petrol stations to sell petrol at N935 per litre across the country.

NNPC also brought down its ex-depot price to N899 per litre even as the initiative has created healthy competition in the downstream sector.

Dangote told critics he is taking the refinery project personally and wants to leave behind a legacy for Nigeria. “No one has ever invested $20 billion on one project in the last 100 years,” he said. He said it is about leaving a legacy, not amassing cash.

Key insights:

Dangote refinery bows to market forces, slashes petrol price to N899.50 per litre.
Facility now refines 350,000 barrels of crude per day, with goal of 650,000 barrels of daily capacity.

Nigeria’s foreign exchange reserves are supported by initiative to reduce petrol imports.
But Dangote emphasises how the refinery’s significance as it seeks to contribute to national development and leave a legacy.

Rumors that tied a $1 billion investment by the Nigerian National Petroleum Company to liquidity crises were baseless, according to the business mogul. He added, “The refinery works autonomously and the investment is small change in a $20bn scheme.”