Nigeria’s Dangote Petroleum Refinery has announced a reduction in the price of petrol, a development that could bring a bit of relief to motorists and businesses across the country. The refinery said on Tuesday that it has cut its ex-depot (gantry) price of Premium Motor Spirit (PMS), commonly known as petrol, by ₦25 per litre, bringing the cost down from ₦799 to ₦774 per litre.
The move was contained in a notice issued by the refinery’s Group Commercial Operations Department to petroleum marketers, and it takes immediate effect nationwide. “This is to notify you of a change in our PMS gantry price from ₦799 per litre to ₦774 per litre,” the circular stated.
Alongside the price cut, Dangote Refinery also confirmed that its PMS lifting incentive a bonus previously offered to marketers has ended. The refinery said the adjustment is aimed at making locally refined petrol more competitive compared with imported fuel, as the current landing price of imported petrol from neighbouring ports is still slightly higher than the refinery’s new gantry rate.
The reduction marks another step in Nigeria’s evolving fuel market following the end of long-standing petrol subsidies and full deregulation of the downstream petroleum sector, moves that have seen retail fuel prices swing widely in recent years. Observers say the refinery’s pricing decisions including this latest reduction are influenced by factors like global crude oil prices, exchange rate movements and competition from imported fuel cargoes.
With a processing capacity of 650,000 barrels per day, the Dangote facility is the largest single-train refinery in Africa and a central part of Nigeria’s effort to reduce dependence on imported petrol and conserve foreign exchange.
