Strategic Petrol Price Cuts and New Incentives Aim to Boost Local Patronage
Lagos, Nigeria – The Dangote Petroleum Refinery has officially introduced a new credit facility for oil marketers. Additionally, the company announced that a free petroleum products delivery scheme will start soon. These major incentives aim to support distributors and increase market share.
New Credit Terms for Oil Marketers
In a fresh update on Saturday, the refinery outlined benefits for its partners. Specifically, oil marketers can now utilize a 10-day credit facility. However, this option requires a bank guarantee. Furthermore, the company reduced the minimum purchase order significantly.
Existing and new customers can now buy 250,000 litres of fuel. Previously, the minimum requirement stood at 500,000 litres. This change lowers the entry barrier for many dealers.
Through its official X account, the company encouraged participation. Consequently, the firm invited dealers to register their outlets immediately.
The refinery stated, “This offer is available to all petrol station owners and dealers nationwide. Our free direct delivery service will commence soon.”
Massive Petrol Price Reduction
These operational changes accompany significant price drops. On December 12, the refinery slashed the ex-gantry price of petrol to N699 per litre. This reflects a substantial N129 reduction from the previous N828 rate.
Before this latest cut, the plant had already lowered costs. Initially, the refinery reduced the ex-depot petrol cost from N877 to N828. Therefore, the pricing trend shows a consistent downward trajectory.
Competing for Market Dominance
The aggressive marketing strategy targets wider patronage for its products. Moreover, it seeks to empower local distributors against foreign competition.
Aliko Dangote, president of the Dangote Group, recently emphasized this goal. In December, he confirmed that his refinery will keep reducing petrol prices. Ultimately, he intends to compete aggressively with product
