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Home News

Dangote under fire over online petrol ‘hawking’

by Godwin Onoh
November 28, 2024
in News
Dangote Group under fire over online petrol ‘hawking’
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The Dangote Refinery has stirred reactions from Nigerians on micro-blogging platform, X, after launching an online campaign to market its Premium Motor Spirit (PMS), otherwise known as petrol.

The marketing strategy has been likened by some Nigerians as “hawking” petrol.

The advertisement features a creative on X that reads: “High Quality PMS (Petrol) for your Vehicle & Engine and also good for the Environment. Buy minimum of 2 million litres @ N970 per litre.”

The company rolled out the campaign just a day after the Nigerian National Petroleum Company Limited (NNPCL) commenced operations at its revamped 210,000-barrel-per-day Port Harcourt Refinery.

It also followed an announcement by Dangote Group’s Chief Branding and Communications Officer, Anthony Chiejina, that the refinery had reduced its PMS price from N990 to N970 in apparent response to the planned reactivation of NNPCL’s refineries.

“As the year comes to an end, this is our way of appreciating the good people of Nigeria for their unwavering support in making the refinery a dream come true,” Chiejina had said.

However, Nigerians appear not to be impressed by the company’s price reduction and online marketing strategy.

The move drew both criticism and mockery from some Nigerians who wondered why the refinery’s petrol price has remained relatively high even though the company buys crude oil locally.

While some X users called on Dangote Group to further reduce the price of its petrol to alleviate citizens suffering, some welcomed the competition between Dangote Refinery and NNPCL as necessary to improve fuel quality and push prices down.

@DanielRegha tweeted: “N970 per litre is expensive for fuel that’s being refined here in Nigeria; Sell to exporters at whatever price, but a litre shouldn’t cost more than N300 (at most) in this country. This refinery has done absolutely nothing to ease the burdens or struggles of Nigerians.”

@Oludarrey said: “I can’t believe my eyes…what sort of street hawking is this?..”

@egbegba_ commented: “High quality petrol. Dangote don dey hawk this him petrol pass who dey hawk gala for traffic. This country dey frustrate person. We go soon hear sweet quality petrol or sweet bitter kola.”

@meet_tycoon added, “This Dangote is not ready. This was why I never pitied him up until Tinubu intervened. For crude you got in Nigeria, you are still pegging your price at a high rate? This is funny.”

@PO_my_presient asked: “This Dangote I don’t understand, you are selling at N970/litre for a crude you buy in naira ?? You want to make all the monies you spent building the refinery in one year ??”

@1lifeArthur further asked: “My question is, if crude is generated from Nigeria, why 970? International market valuation is too lame as an excuse. Can you just be Nigerian for once and keep aside all this fuss with the international forces.

@izzy_mbonu similarly remarked: “This doesn’t make sense. How can imported products be cheaper than your locally sourced and refined products, Mr Dangote?”

Others who commented mockingly advised Dangote Group to explore alternative marketing strategies.

@Amourab wrote, Hire content creators, let them create ads for you. Also you need to look in the direction of packaging fuel to sell. Sachet fuel go sell like Cowbell that year.

“You can also introduce a credit system, buy fuel now, pay later. Or use Adrion home style, give chicken and rice to buyers during Christmas and Ram during Salah.”

@EmodiMba said, “Alhaji, why not start producing sachet fuel, e go too move market ooo.”

@SulaimonIdowuu tweeted, “How much is the last price? Will you accept 950 for 2 million litres?”

On his part, @SheethJamaal attributed the move to “The power of competition” adding “the common man wins.”

@tobaatol wrote, “I like what I’m seeing sha… competitive market is so good. Dangote is really advertising his produce. We should get fuel for 300 naira maximum per litre soonest. That’s my prayer though”

@tesh_ola said, “We once begged for this, all it took was losing NNPC’s patronage for u guys to do the right thing.”

@Mayordavid_9 added: “Let’s wait till the remaining 3 refineries start producing,
maybe fuel no go drop to 400 naira.”

In October 2024, the NNPCL ended its exclusive purchase agreement with Dangote Refinery to allow other marketers to buy petrol directly from the refinery.

The national oil firm had been purchasing petrol from Dangote Refinery at N898.78 per litre and selling to marketers at a subsidized price of N765.99 to enable Nigerians access the product cheaper.

Reports emerged recently that Dangote was seeking funds to secure a steady crude supply for the refinery.

However, investors reportedly raised concerns about the refinery’s long-term viability, particularly regarding its ability to secure consistent crude supply and maintain profitability.

Tags: Dangote

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