Business
Dangote: Our Petrol is 15% Cheaper Than NNPCL’s Imported Fuel
Aliko Dangote, President of the Dangote Group and Africa’s wealthiest man revealed that petrol produced by the Dangote Refinery is 15% cheaper than the fuel imported by the Nigerian National Petroleum Company Limited (NNPCL).
He made this statement during an interview with Bloomberg Television, addressing recent developments in Nigeria’s fuel pricing.
His comments followed NNPCL’s announcement that it purchased petrol from the Dangote Refinery for N898 per litre on September 15, 2024.
Shortly after, NNPCL raised fuel prices across the country, with costs ranging from N950 to N1,100 per litre at filling stations.
This sudden price increase created confusion in the oil and gas sector, fueling public concern about the rising cost of fuel.
Dangote clarified the situation, explaining that NNPCL had purchased approximately 800,000 metric tons of imported gasoline around the same time it bought fuel from the Dangote Refinery.
He emphasized that the petrol produced by his refinery was sold at a lower price compared to NNPCL’s imported fuel.
According to Dangote, the price NNPCL quoted for his refinery’s fuel was not the actual cost but rather the final price after adding profit margins and other expenses incurred by the state-owned company.
He stressed that Nigerians were unaware of the full cost NNPCL incurs when importing fuel, noting that imported gasoline is about 15% more expensive than the petrol produced domestically by Dangote’s refinery.
Dangote explained that NNPCL’s higher price reflects these added costs, making his refinery’s fuel more affordable by comparison.
Addressing the broader fuel pricing issue, Dangote suggested that NNPCL could opt for a basket price approach or consider removing the remaining fuel subsidies altogether.
He stated that removing the subsidies would create a more transparent pricing structure and allow the market to adjust accordingly.
This discussion on fuel pricing comes amid calls from Dangote and other industry stakeholders for the Nigerian government to eliminate fuel subsidies.
Earlier reports indicated that petrol marketers had been purchasing NNPCL’s imported fuel at an average price of N870 per litre, further highlighting the price discrepancy between locally produced and imported fuel.
Bitcoin has fallen below $63,000, reaching its lowest level since October 2024 amid weakening investor confidence and increased volatility in the cryptocurrency market.
According to CoinMarketCap data, Bitcoin dropped 13.9 per cent to $62,965 as of 10:20 p.m. on Thursday. The decline comes after months of downward movement, with the cryptocurrency now more than 45 per cent below its October peak.
Ethereum also recorded a sharp decline, falling 13 per cent to $1,863, while the global cryptocurrency market capitalisation dropped to $2.19 trillion.
Analysts reportedly linked the latest decline to a broader sell-off in US technology stocks, which has also affected other risk assets. Bitcoin had reached an all-time high of more than $125,000 on October 5 before falling sharply in the days that followed, highlighting the continued volatility in the crypto market.
Businessman Aliko Dangote has explained why he believes Nigerians should participate in the ownership of his refinery by purchasing shares.
He was asked by singer Davido why Nigerians should participate, and Dangote explained that the initiative would help spread wealth and prosperity across Africa.
“Well, it’s very important because that is the only way to spread prosperity and wealth throughout Africa. And like I said, this is not going to be the first and the last. We will continue with even our fertilizer. By the time we finish listing, every single one will own part of our businesses and we will create a pool of cash…”
He explained that the goal is to create opportunities for more Nigerians to own a stake in the businesses and help spread wealth across the country.
Aliko Dangote speaks on his lineage and addresses not having a son as he was asked about not having a son to carry his name and achievements.
“That is not my priority because God controls everything. You can pray for God to give you a son, but he might be the one to take down the name of the family.”
Instead, he shared that he does not mind not having a son. “I don’t think a son would have done better than the three daughters I have.”
Aside from that, he was also asked about giving advice to young Nigerians. “Work hard, be consistent, focused and know what you want to do.”
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