Nigeria’s downstream petroleum sector may be headed for cost relief following a fresh price cut by the Dangote Petroleum Refinery and Petrochemicals, which has reduced its ex-depot price of premium motor spirit (PMS) to ₦1,200 per litre.
The adjustment, announced on Friday by Dangote Group spokesperson, Anthony Chiejina, also pegged the refinery’s coastal price at ₦1,153 per litre—moves expected to influence pricing across depots and retail outlets nationwide.
The latest reduction represents a ₦75 drop from the previous ₦1,275 per litre rate, marking a shift in the refinery’s pricing structure at a time when global oil markets remain volatile due to tensions in the Middle East.
“Dangote Petroleum Refinery & Petrochemicals has reduced its gantry price for petrol to ₦1,200 per litre and its coastal price to ₦1,153 per litre, a move that comes amid ongoing tensions in the Middle East that continue to influence global oil markets.
“The adjustment marks a downward review in the refinery’s pricing structure and is expected to influence fuel supply costs across distribution channels, including depots and retail outlets,” Chiejina stated.
The refinery had recently raised its petrol price from ₦1,175 per litre to ₦1,245 per litre, before the latest reversal, underscoring the sensitivity of domestic pricing to global supply dynamics.
Chiejina noted that the revised ex-depot rate is likely to ripple through the downstream sector, easing procurement costs for marketers and potentially lowering pump prices for consumers. “The price adjustment represents a downward review in the refinery’s ex-depot pricing and is expected to ripple across Nigeria’s downstream sector, potentially easing supply costs for marketers and influencing pump prices at retail outlets. He added that lower ex-depot prices typically translate into reduced pump prices.”
Despite the reduction, the Dangote Group warned that external pressures persist. “The Middle East crisis has introduced renewed uncertainty into global oil markets, affecting shipping routes, insurance premiums, and supply chains,” he said.
He, however, pointed to the growing role of domestic refining capacity as a buffer against such shocks. “For Nigeria, the presence of large-scale local refining capacity is increasingly seen as a stabilising factor, offering some insulation from external shocks even as global market pressures persist,” Chiejina added.