Dangote Petroleum Refinery and Petrochemicals FZE has reduced the gantry price of Premium Motor Spirit (PMS) by N25 per litre, lowering the ex-depot rate from N799 to N774 per litre.
The adjustment was announced in a notice issued by the refinery’s Group Commercial Operations Department to marketers, stating that the new price takes immediate effect.
“This is to notify you of a change in our PMS gantry price from N799 per litre to N774 per litre,” the notice read.
The refinery also informed marketers that its PMS lifting incentive programme has ended. Industry observers say the price cut is expected to enhance the competitiveness of locally refined petroleum products in the domestic market.
Tuesday’s reduction marks the latest in a series of price adjustments for petrol, with analysts attributing fluctuations largely to movements in the exchange rate and global crude oil prices.
In 2024, the ex-depot price of PMS fluctuated between N700 and above N800 per litre, directly influencing pump prices nationwide.
The 650,000-barrel-per-day Dangote Refinery, the largest in Africa, began delivering petrol in 2024. Earlier in January of that year, the facility commenced production of diesel and aviation fuel.
Nigeria had for years swapped billions of dollars’ worth of crude oil for imported petrol, which was heavily subsidised to maintain low domestic prices. Fuel imports and subsidy payments significantly strained the country’s foreign exchange reserves amid declining oil revenues and foreign currency shortages.
Since assuming office in May 2023, President Bola Tinubu has implemented key economic reforms, including the removal of fuel subsidies and the floating of the naira. The administration maintains that the measures are necessary to attract investment and support long-term economic growth.
However, in the short term, fuel prices have surged, and inflation climbed to a three-decade high of 34 per cent in June 2024, intensifying cost-of-living pressures across the country.
