Dangote Cuts Petrol Price, Moves To Deepen Footprint In Burundi - 2wks ago

Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit, PMS, by N25 per litre, in a move analysts say underscores its growing influence over Nigeria’s deregulated fuel market and its wider African ambitions.

The ex-depot price to marketers has been cut from N799 to N774 per litre, with the new rate taking immediate effect. In a notice to its customers, the refinery’s Group Commercial Operations Department confirmed the adjustment and said the change had been reflected on industry pricing platforms.

At the same time, the refinery has withdrawn a temporary lifting bonus that had rewarded marketers for higher offtake volumes. The incentive, introduced during an earlier phase of market entry, has now been discontinued, with Dangote informing partners that all accrued credits within the qualifying period would be reconciled in their account statements.

Energy economists interpret the twin decisions as a shift from aggressive volume-push tactics to a more mature pricing framework, as the 650,000-barrel-per-day facility consolidates its role as the anchor supplier in Nigeria’s downstream sector. The price cut follows a turbulent period of petrol cost swings driven by exchange rate volatility, global crude prices and heavy dependence on imports before the refinery ramped up domestic supply.

By trimming its gantry price after a previous increase to N799 per litre, the refinery appears to be responding to easing cost pressures and intensifying competition from imported cargoes and emerging local refineries. Market watchers say the new rate could help moderate pump prices, particularly in coastal and southern markets where Dangote’s logistics advantage is strongest.

Beyond Nigeria, the Dangote Group is simultaneously advancing a fresh wave of investments in East Africa. Aliko Dangote, accompanied by former Nigerian president Olusegun Obasanjo, has held talks in Bujumbura with Burundian president Evariste Ndayishimiye, signalling plans to enter the country with large-scale industrial projects.

According to the group, joint technical teams from Burundi and Dangote have been set up to map priority sectors and design bankable ventures. Areas under consideration include solid minerals, power, agriculture, cement and infrastructure, all central to Burundi’s push for industrialisation and energy security.

Analysts say the combination of a strategic fuel price recalibration at home and exploratory investment moves in Burundi highlights Dangote’s dual playbook: stabilising its dominance in Nigeria’s liberalised fuel market while extending its industrial footprint across the continent.

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