Dangote Refinery Cuts Petrol To N1,075/Liter In Fresh Price Review

Dangote Petroleum Refinery has reduced the ex-depot prices of Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil (AGO), also known as diesel, in a fresh pricing review that could provide short-term relief for fuel marketers and bulk buyers across Nigeria.

The new pricing template released by the refinery on Tuesday, shows that the gantry price of petrol has been reduced by N100 to N1,075 per litre, down from the previous price of N1,175 per litre recorded in recent days.

The refinery also indicated that PMS supplied through its coastal distribution channel will now sell at N1,050 per litre, reflecting a slightly lower price for marine deliveries compared with products loaded directly at the refinery’s gantry.

Similarly, the refinery reduced the gantry price of diesel to N1,430 per litre, representing a N190 decrease from the earlier price of N1,620 per litre.

However, the company clarified that the quoted ex-depot prices exclude statutory charges and regulatory fees imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which are typically added before final distribution to marketers.

Industry observers attributed the downward adjustment largely to the recent decline in global crude oil prices, which has begun to ease cost pressures in the international petroleum market and influence pricing dynamics in Nigeria’s downstream oil sector.

The price cuts come just days after a series of upward adjustments in gantry prices that had raised concerns among marketers and transport operators over the rising cost of fuel supply.

Market analysts noted that the reduction could temporarily ease the financial burden on fuel marketers who had been grappling with rapidly increasing loading costs, particularly as many depot operators and distributors had adjusted their pricing structures following the earlier increases.

They added that while the ex-depot price cut is a positive signal for the market, its real impact will depend on how quickly the revised prices filter through the supply chain to retail outlets across the country.

Retail pump prices across many parts of Nigeria have recently hovered above N1,200 per litre, reflecting supply costs, distribution margins, logistics expenses and regulatory charges.
With the latest adjustment by the Dangote Petroleum Refinery, market participants are closely monitoring whether depot operators and independent marketers will revise their pump prices downward in the coming days.

Analysts also note that sustained declines in global crude oil prices could encourage further price adjustments in the domestic fuel market, potentially moderating the cost of transportation and goods in the broader economy if the trend persists.