Dangote Petroleum Refinery has quietly introduced a rebate system that lowers the effective price of petrol for marketers by ₦10 per litre, cutting its practical rate from ₦835 to ₦825.
Although the refinery has not officially announced a new ex-depot price, it has begun refunding ₦10 per litre to customers after loading. This strategic rebate enables off-takers to sell petrol at a lower price band of ₦827–₦830 per litre, giving Dangote another advantage in the ongoing price war with importers and private depot operators.
Marketers Now Pay ₦835 But Get ₦10 Refund
According to industry insiders, Dangote’s current pricing structure requires marketers to pay ₦835 per litre upfront. After loading the product, the refinery issues a ₦10 refund per litre, bringing the effective cost down to ₦825.
“It’s not an official reduction yet,” a reliable source disclosed. “But marketers are receiving a rebate after purchase, which allows them to stay competitive on pricing at their retail outlets.”
This rebate system is Dangote’s latest tactic to edge out competitors, many of whom continue to rely on imports and cannot match the refinery’s flexible pricing model.
Dangote’s Price War Strategy Continues
This move follows a recent double price cut in April, when Dangote slashed its PMS ex-depot price from ₦880 to ₦835 per litre within one week. The reductions came shortly after the federal government reinstated the crude-for-naira swap deal with local refiners, which provided cost advantages over importers.
Dangote’s pricing strategy continues to put pressure on private depots, many of which are still struggling to hold on to a shrinking market share. The refinery now controls over 50% of Nigeria’s PMS distribution and is steadily using discounts, rebates, and strategic price adjustments to consolidate its dominance.
Efforts to get official confirmation from Dangote spokesperson Anthony Chiejina were unsuccessful at the time of filing this report.