Dangote Petroleum Refinery has reduced the ex-gantry price of its premium motor spirit (PMS), popularly known as petrol, to N774 per litre.
This represents a N25 per litre drop from the previous rate of N799 and takes effect nationwide immediately, the company confirmed.
The announcement was made in a statement released on Tuesday, noting that marketers had been informed of the adjustment.
What the Dangote Refinery saying
The refinery emphasized that the price adjustment positions locally refined petrol as a more cost-effective alternative to imports.
“This is to notify you of a change in our PMS gantry price from N799 per litre to N774 per litre,” the statement read.
“The adjustment further strengthens the competitiveness of locally refined products, as the current landing price of imported PMS from Lome stands at about N793 per litre, compared to Dangote Refinery’s ex depot price of N774 per litre,” the refinery added.
Backstory
Dangote Refinery’s price revision follows warnings earlier this year about the high costs associated with coastal fuel logistics.
On February 5, the company noted that continued reliance on coastal distribution could push pump prices to N1,000 per litre, citing transportation and operational expenses. Coastal logistics were projected to cost an additional N1.75 trillion annually, according to the refinery.
The reduction also reflects broader efforts to strengthen local refining capacity. By maintaining an ex-gantry price lower than the cost of imported fuel, Dangote Refinery aims to make domestic petrol more attractive and affordable, potentially reducing Nigeria’s fuel import dependence over time.
More Insights
Industry experts indicate that sustained competitive pricing from Dangote could have wider economic benefits.
- Lower local fuel prices may gradually reduce the nation’s import bills for petrol.
- Increased consumption of domestically refined fuel could improve Nigeria’s trade balance.
- The move may encourage other players in the local refining sector to adopt similar pricing strategies.
The strategy highlights the growing importance of local refining in tackling fuel scarcity and volatility in the Nigerian market.
What you should know
The price adjustment is expected to influence retail petrol prices nationwide, with marketers likely passing some of the savings to consumers.
- In January, the Dangote Refinery insisted that it will continue to operate at full capacity while supplying over 50 million litres of petrol daily to the Nigerian market.
- The Lagos-based 650,000 barrels-per-day facility said production remains stable and uninterrupted.
- The Refinery stated that it has consistently maintained petrol production levels of between 40 million and 50 million litres daily, subject only to market demand.
In January, the Nigerian National Petroleum Company (NNPC) Limited increased the pump price of petrol to N839 per litre in Abuja.
Also, NNPC increased the price of the product by N50 from N785 per litre to N835 in Lagos.
