Market Forces Drive PMS price Drop to N899.50 per litre, Says Dangote, As Refinery Sparks Economic Shift




The president of the Dangote Industries Limited, Aliko Dangote, explained that the complicated dynamics of market forces were the causes of the drop in the price of Premium Motor Spirit (PMS), to 899.50 per litre at loading gantry. He said it is his duty to ensure that the multi-billion dollar company’s interests and investment is protected. He stated, We invested more than $20 billion in this refinery, therefore I believe we need to project our interests and also our investment.

Dangote continued the conversation by restating that the 650,000 barrels per day, the refinery will revolutionize Nigeria’s overall economy in addition to the oil industry. He said the pressure on foreign exchange increases when nation import petroleum products. “people who deal in petroleum products account for our demand for foreign exchange, and the more we allow imports to enter or country, not because I don’t want them, but because most of those letters of credit open for petroleum products and the goods are not coming into Nigeria, the more we continue to use the majority of our foreign exchange out of the country”, He said.

On Dec. 19 the ex-depot of the Dangote refinery’s PMS was reduced from N970 to N899.50 per litre. The downstream industries experienced fierce pricing competition as a result, which make NNPC to lower its ex-depot price to N899 per litre.

The Dangote refinery announced that it will be partnering with MRS petrol stations to offer its retail outlets in the country for N935 per litre.

 

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