Petrol, Diesel Prices Drop as Dangote Cuts Ex-Depot Rates

Petrol, Diesel Prices Drop as Dangote Cuts Ex-Depot Rates

 

Motorists and businesses may get some relief from fuel costs as Dangote Petroleum Refinery announced fresh reductions in the ex-depot prices of petrol and diesel, cutting the prices by N50 and N80 per litre respectively.

Under the new pricing regime, the refinery reduced the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, from N1,215 to N1,165 per litre.

The price of Automotive Gas Oil (AGO), or diesel, was also reduced from N1,650 to N1,570 per litre.

The latest adjustment represents a 4.1 per cent reduction in the price of petrol and a 4.8 per cent cut in diesel.

The refinery said in a statement issued by the Dangote Group on Wednesday that the review was aimed at improving energy affordability, expanding access to locally refined petroleum products and supporting economic activities across the country.

The company said the new prices reflected its commitment to delivering affordable and quality petroleum products while maintaining a stable supply to the Nigerian market.

“Dangote Petroleum Refinery has announced a reduction in the ex-depot prices of Premium Motor Spirit (PMS) and Automotive Gas Oil (Diesel), reaffirming its commitment to providing affordable, high-quality petroleum products to the Nigerian market,” the statement said.

It added that the refinery would continue to leverage operational efficiencies and pass the resulting benefits to consumers whenever market conditions allowed.

The latest reduction comes less than two weeks after the refinery resumed naira-denominated petrol sales and raised its ex-depot price to N1,215 per litre following a brief shift to dollar-based transactions.

The earlier change had triggered concerns among petroleum marketers over rising downstream costs.

In July, the refinery had temporarily suspended petrol truck loading and introduced dollar-denominated sales, with petrol priced at $0.779 per litre under the new framework. It subsequently returned to naira transactions and fixed the ex-depot price at N1,215 per litre.

With the latest adjustment, the refinery has now reversed part of that increase, reducing the petrol price by N50 and diesel by N80.

However, the new figures are ex-depot prices and do not necessarily translate into an equivalent reduction in pump prices. The final price paid by motorists will depend on factors including transportation, depot charges, margins and other downstream costs.

Dangote said it remained committed to ensuring stable supplies while improving operational efficiency and supporting consumers, businesses and other stakeholders.

The refinery, which has a nameplate capacity of 650,000 barrels per day, has increasingly become a major source of locally refined petrol, diesel and other petroleum products as Nigeria seeks to reduce its dependence on imported refined fuels.

The company said its operations were contributing to Nigeria’s energy security by strengthening domestic refining capacity, reducing reliance on imports and supporting economic development.

It added that it would continue to pass on the benefits of improved operational efficiencies to consumers whenever market conditions permitted.