PMS price cut: Dangote to refund customers, absorbs N16bn loss

Dangote Petroleum Refinery & Petrochemicals yesterday disclosed that it will refund customers who purchase Premium Motor Spirit (PMS) at rates higher than the advertised prices from any of its key partners including AP (Ardova Plc), Heyden, or MRS – across Nigeria. Dangote stated that this decision followed the refinery’s recent reduction of its gantry (ex-depot) […]

Dangote Petroleum Refinery & Petrochemicals yesterday disclosed that it will refund customers who purchase Premium Motor Spirit (PMS) at rates higher than the advertised prices from any of its key partners including AP (Ardova Plc), Heyden, or MRS – across Nigeria.

Dangote stated that this decision followed the refinery’s recent reduction of its gantry (ex-depot) price from N890 per litre to N825 per litre.

The price reduction took effect on Thursday drawing commendations from marketers who said the move would further reduce the price of fuel across the country.

In a statement, the refinery said its decision to refund some customers was part of its ongoing efforts to ensure that Nigerians are the primary beneficiaries of the price reduction and in line with President Bola Tinubu’s Renewed Hope Agenda, which aims to stimulate the economy.

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The refinery confirmed in the statement that it will refund N65 per litre on the over 200,000 metric tonnes of PMS purchased by marketers at the old gantry price of N890 per litre, prior to the new rate of N825 per litre.

The refinery also said it absorbed N16 billion loss by refunding N65/litre to marketers for Nigerians to benefit from cheaper fuel.

It listed the approved rates per litre to include 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.

With the new gantry price set at N825 per litre, Dangote Refinery expects that no Nigerian will pay more than N900 per litre for PMS, regardless of location or petrol station. The refinery also underlined its commitment to providing high-quality, eco-friendly fuel that benefits vehicle performance and supports public health.

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

The refinery emphasised that this initiative extends beyond MRS Holdings, Ardova Plc (AP), and Heyden.

It urged other marketers sourcing stock from it to pass on the benefits of the new pricing to consumers at the retail level, encouraging a collective commitment to affordable, quality products.

Meanwhile, Dangote condemned any exploitation of the new pricing structure, saying, “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. 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. Consumers who purchase fuel above the advertised rate at any of its key partners – AP (Ardova Plc), Heyden, or MRS – anywhere in Nigeria, are encouraged to report to Dangote Refinery with their receipts for a full refund of the excess amount.

“Our commitment aligns with the objectives of President Bola Tinubu’s Renewed Hope Agenda, which champions self-sufficiency in critical sectors like energy. We remain dedicated to supporting Nigeria’s economic growth and ensuring every Nigerian has access to affordable, high-quality energy solutions.

“This initiative is one of many ways Dangote Petroleum Refinery & Petrochemicals continues to contribute to a prosperous and sustainable future for our country. In this journey toward energy security, we stand united with the Nigerian people, always striving to provide lasting solutions and a more prosperous future for all.”