Dangote Announces Fresh N50 Petrol Price Reduction, Opens Supply to All Marketers

Dangote Announces Fresh N50 Petrol Price Reduction, Opens Supply to All Marketers

The Dangote Petroleum Refinery has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, lowering the price from N1,125 to N1,075 per litre in a move expected to intensify competition in Nigeria’s downstream petroleum sector and drive down retail pump prices.

The latest N50 per litre reduction, representing approximately 4.4 per cent, took effect immediately and marks the refinery’s second petrol price cut within one week, underscoring its strategy of making locally refined fuel more competitive and accessible across the country.

With the latest adjustment, the refinery has now reduced its ex-depot petrol price by N100 per litre in just one week, having earlier cut the price from N1,175 to N1,125 per litre.

Industry stakeholders believe the fresh price reduction is likely to compel petroleum marketers sourcing products from the refinery to lower pump prices, offering relief to motorists and businesses grappling with high transportation and operating costs.

In another significant policy shift, the refinery has harmonised its coastal loading price with its ex-gantry price, fixing both at N1,075 per litre. The move eliminates the previous pricing disparity between products loaded through coastal terminals and those lifted directly from the refinery’s gantry.

A senior official of the refinery, who spoke anonymously because he was not authorised to speak publicly, confirmed that the revised pricing became effective immediately.

“The refinery has reduced the ex-gantry price of PMS from N1,125 per litre to N1,075 per litre. The coastal loading price has also been adjusted to N1,075 per litre. This is part of the refinery’s efforts to make products more accessible and competitive in the market,” the official said.

The official also disclosed that the refinery had dismantled its 20-member marketers’ consortium, which previously coordinated product lifting from the facility.

According to the source, all qualified marketers are now eligible to purchase petrol directly from the refinery, provided they meet the required operational and regulatory conditions.

“The consortium arrangement has been cancelled. Loading at both the gantry and coastal terminals is now open to all marketers that meet the necessary requirements. The objective is to deepen market access and ensure seamless distribution of products across the country,” the source added.

The revised pricing has also been reflected on petroleum industry monitoring platform Petroleumprice.ng, confirming the new ex-depot price of N1,075 per litre.

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The latest reduction is expected to increase competitive pressure across Nigeria’s deregulated downstream petroleum market, where fuel prices are now largely determined by market forces following the removal of petrol subsidies.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, recently reaffirmed that the era of government-controlled petrol pricing has ended, stressing that competition among suppliers and expanding local refining capacity will ultimately determine fuel prices.

According to the minister, the Federal Government remains committed to strengthening domestic refining to reduce dependence on imported petroleum products, improve energy security and encourage price stability through competition.

Similarly, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has consistently maintained that petrol prices should remain cost-reflective under the deregulated market framework while urging marketers to avoid arbitrary pricing and anti-competitive practices.

The Federal Competition and Consumer Protection Commission (FCCPC) has also emphasised that consumers should benefit from lower prices whenever production costs decline or product availability improves.

Energy analysts say Dangote Refinery’s latest pricing decision could trigger another round of downward reviews by independent marketers and fuel importers seeking to remain competitive in the evolving market.

They also note that continued reductions in ex-depot prices could significantly reduce transportation costs, ease inflationary pressures and support economic activities, particularly if global crude oil prices remain stable and exchange rate volatility is contained.

With a refining capacity of 650,000 barrels per day, the Dangote Petroleum Refinery is expected to play a central role in reshaping Nigeria’s petroleum market by increasing local fuel supply, reducing import dependence and fostering sustained competition among industry players.

The latest price review reinforces the refinery’s aggressive market strategy and signals its determination to leverage local refining capacity to deliver more affordable fuel to Nigerian consumers.

Dangote Announces Fresh N50 Petrol Price Reduction, Opens Supply to All Marketers