Nigeria’s Dangote Petroleum Refinery has quietly introduced a N10 per litre rebate system for fuel marketers, effectively reducing the pump price of petrol without making an official price change announcement. While marketers still pay the publicly listed price of N835 per litre when loading at the refinery’s gantry, they now receive a N10 refund per litre after completing their purchases and transporting the fuel – bringing the actual price down to N825 per litre. This discreet pricing strategy, confirmed by multiple industry sources on Monday, allows Dangote to strengthen its position in Nigeria’s fuel market by enabling retailers to sell petrol at more competitive rates (N830-N835/litre) compared to imported products, without triggering a public price war.
The rebate comes just weeks after Dangote made two official price reductions in May, slashing prices from N880 to N835 per litre following the full implementation of its crude oil supply agreement with the Nigerian National Petroleum Company (NNPC). Industry analysts suggest this latest move may be testing the market’s response before potentially announcing another formal price cut.
Key Details of the Rebate Program
✔ How It Works: Marketers pay N835/litre upfront, get N10 back later
✔ Effective Price: N825/litre (lowest since refinery’s market entry)
✔ Current Impact: Retail prices now between N830-835/litre in stations selling Dangote fuel
Why This Matters
► Market Competition: Puts pressure on import-dependent sellers
► Consumer Benefit: Could lead to lower pump prices if adopted widely
► Strategic Move: Tests pricing flexibility without public announcement
Recent Price History
- April: N880/litre (initial launch price)
- May 1st: Reduced to N860/litre
- May 15th: Further cut to N835/litre
- June: N825/litre (with rebate)
What’s Next?
- Possible official price announcement if rebate system succeeds
- Expected response from competing fuel marketers
- Potential wider impact on Nigeria’s fuel pricing structure
