President of the Dangote Group, Aliko Dangote, has disclosed that the commencement of operations at the Dangote Refinery triggered a substantial drop in diesel prices across Nigeria with the cost per litre declining from N1,700 to N1,100 within a short period.
Dangote made the disclosure during a facility tour by a delegation from the Economic Community of West African States (ECOWAS), led by Dr. Omar Alieu Touray, President of the ECOWAS Commission.
The visit to the 650,000 barrels-per-day refinery, located in Lagos, was part of the Commission’s efforts to assess the refinery’s capacity and its broader regional impact on energy security and trade.
Speaking on the refinery’s performance, Dangote stated, “Last year, when we began diesel production, we were able to reduce the price from N1,700 to N1,100 at a go. As of today, the price has dropped even further. This reduction has made a significant impact across various sectors. It has supported industries, benefited those of us in mining, and provided vital relief to the agricultural sector.”
The price adjustment has translated to reduced logistics and operational costs for businesses across key sectors of the economy.
The decline is attributed to improved local supply, elimination of import premiums and exchange rate stability arising from refined products being sourced domestically.
Dangote reiterated that the goal of the refinery is to drive sustainable value creation across the Nigerian economy by reducing reliance on imported petroleum products and enhancing local refining capacity.
“This refinery is built for Nigerians. Our aim is to ensure consistent, affordable fuel supply while boosting industrial output,” he said.
The billionaire industrialist also addressed petrol pricing disparities within the region, noting that Nigerians pay only 55% of what citizens in neighbouring countries are charged for Premium Motor Spirit (PMS).
“In neighbouring countries, petrol sells for around N1,600 per litre. At our refinery, we are currently selling PMS at between N815 and N820 per litre,” he added.
The Dangote Refinery, which is regarded as the world’s largest single-train refining facility, began phased production of petroleum products in 2023. It is designed to meet the full domestic demand for refined products, including diesel, petrol, aviation fuel and more, while also creating surplus for export to West African markets.
The ECOWAS delegation praised the refinery’s contributions to regional energy security and intra-African trade. Dr. Touray noted that large-scale infrastructure such as the Dangote Refinery could play a critical role in deepening economic integration and industrial growth across the ECOWAS sub-region.
Dangote reaffirmed that the group is committed to future expansion, noting that a larger industrial initiative is underway, though details remain undisclosed.
“We have a much bigger development in the pipeline. Nigerians will enjoy the maximum benefit from this facility and what is coming next,” he stated.
With diesel prices now significantly lower than pre-refinery levels and petrol prices stabilising, the Dangote Refinery is emerging as a key driver of price moderation and energy efficiency in Nigeria’s downstream petroleum sector.
Industry stakeholders are expected to closely monitor product distribution, pricing trends, and regional supply integration as the refinery expands operations.
