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Uniform petroleum product pricing begins August 15

The Dangote Refinery (DR) is set to begin a nationwide uniform pricing regime from August 15. To internalize logistics costs, it has acquired 4,000 CNG-powered trucks and is constructing a refilling network with an estimated Capex of ₦720 billion and an annual logistics cost of N1.07trn.

The direct distribution of an estimated 65 million liters of petroleum products is expected to eliminate price arbitrage and regional disparities.

Savings for consumers, cleaner environment for Nigeria

Cheaper and uniformly priced petroleum products will reduce cost pressure on consumers. In addition to cost relief, DR offers guaranteed supply and quality.

The use of compressed natural gas (CNG), a cleaner alternative, will improve environmental quality and reduce emissions.

Still, systemic gaps remain. Nigeria lacks a functional modern pipeline grid. A $4 billion pipeline revamp of the existing network of pipelines and depots, potentially via public-private partnership (PPP), could unlock efficiencies and reduce long-term costs.

Dangote Refinery slashes PMS price

Effective immediately, DR has reduced its ex-depot price to ₦840 per litre. Oil prices are likely to fall slightly after OPEC meeting on July 6. This could help reduce inflation and ease cost pressures on households.

Cocoa prices declined by 25% to $8,897/mt

Cocoa futures have declined by 25% to $8,897/mt from $12,000/mt. The drop is attributed to favourable weather conditions, which supported a strong mid-crop harvest in Ivory Coast, Ghana, and Nigeria. Further declines are likely as Brazil, Indonesia, and Nigeria plan to expand production in the 2025/26 season.

FDC’s MD, Mr. Bismarck Rewane, and analyst, Rosemary Ehira, discussed these and other burning economic issues on Channels TV Business Morning and Business Incorporated, respectively.

Click the link below to watch the video.

Enjoy your read!