In a dramatic intervention aimed at reshaping Nigeria’s fuel market, Aliko Dangote, Founder of the Dangote Group, has unilaterally announced a nationwide price cap of ₦739 per litre for Premium Motor Spirit (PMS), effective immediately. The declaration, made from his Lekki Refinery, challenges both market operators and regulators and signals a direct confrontation over control of the downstream petroleum sector.
Dangote revealed that his refinery had already slashed its ex-depot (gantry) price to ₦699 per litre two days prior—a price that includes statutory charges paid to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). He stated that the net price to the refinery is approximately ₦389, exposing the substantial margins currently being captured in the supply chain.
“Starting from Tuesday, MRS will start selling petrol at N739/litre. We will enforce that low price,” Dangote asserted, framing the move as a public service. “We are selling at N699. Those who want to keep the price high to sabotage the government, we will fight as much as we can.”
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The billionaire industrialist levelled serious allegations of market manipulation, claiming some officials had colluded with marketers to maintain artificially high pump prices. “I was told that the marketers have met with [some officials] and were told to make sure that the price is maintained high,” he disclosed, vowing that the era of ₦970 per litre was over.
To achieve the price crash, Dangote issued an open invitation to bulk buyers, including members of the Independent Petroleum Marketers Association of Nigeria (IPMAN): “We have asked anybody who can buy 10 trucks to come and buy 10 trucks at N699. We are going to use whatever resources we have to make sure we crash the price down.” He projected a stabilization period of one to two weeks, with the ₦739 cap intended to hold through December and January.
Transport Costs
Dangote provided a stark cost breakdown to justify the new price. With a maximum freight cost of ₦15 per litre within Lagos, the landed cost at a station should be around ₦715. “Why do you want to sell at N900? People should get the real price,” he questioned, highlighting the disconnect between fundamental costs and retail prices.
The press briefing escalated into a broader indictment of national energy policy. Dangote criticized the NMDPRA for planning to issue 47 import licenses for over 7.5 billion litres of petrol in Q1 2026. He argued this move deliberately undermines local refining capacity and investment security. “They are now ready to issue licences… despite the fact that we have guaranteed to supply enough quantity,” he said, warning of dire consequences for the industry. “Those modular refineries are almost on the verge of collapse. None of them is making a dime.”
This announcement represents more than a price cut; it is a strategic power play. By publicly setting a price and accusing regulators of corruption and market distortion, Dangote is positioning his refinery not just as a supplier, but as a de facto regulator and consumer champion. The coming weeks will test his ability to enforce this price against entrenched interests and determine whether this marks a permanent shift in Nigeria’s fuel pricing dynamics or a temporary market disruption.