Dangote Moves To Equalise Petrol Prices Nationwide

Dangote Petroleum Refinery and Petrochemicals has said it is working to achieve more uniform petrol prices across Nigeria by absorbing transportation costs and expanding the nationwide distribution of its products.

The Vice President, Oil and Gas, Dangote Industries Limited, Edwin Devakumar, disclosed this on Friday during a media engagement at the Dangote Refinery in Lekki, Lagos.

Devakumar said the company had deployed trucks to distribute petrol across the country and was subsidising transportation to reduce the price differences caused by the cost of moving products from the coastal region to distant markets.

He said the company was working towards a situation where petrol would sell at broadly similar prices in locations including Sokoto, Maiduguri and Calabar.

"We are now actually trying to equalise the price, whether you want to buy in Sokoto, whether you want to buy in Maiduguri, whether you are going to buy in Calabar, the price should be the same," Devakumar said.

He said the company had brought in additional trucks to subsidise transportation and ensure uniform distribution across the country.

The Dangote executive said the initiative was already having an impact, adding that the company was working to deepen nationwide distribution by absorbing transportation costs.

The refinery's latest distribution push builds on its earlier nationwide logistics programme, which involved thousands of trucks and direct delivery of petroleum products to customers and marketers. Recent reports put the operational fleet at more than 4,000 trucks.

Devakumar also said petrol prices in Nigeria remained lower than those in several neighbouring countries, including coastal West African countries.

He attributed geographical differences in domestic petrol prices partly to transportation and logistics costs, saying the company's intervention aimed to reduce that burden.

The development comes as the Dangote refinery continues to expand its role in Nigeria's downstream petroleum market and prepares for its proposed initial public offering.