The Dangote Petroleum Refinery has sharply reduced its ex-depot price for Premium Motor Spirit (PMS), commonly known as petrol, lowering the cost from N828 to N699 per litre, according to real-time market data from Petroleumprice.ng. The N129 drop, which took effect on Thursday, represents a 15.58 per cent reduction and marks the refinery’s 20th petrol price adjustment this year.
An official of the refinery, speaking on condition of anonymity due to lack of authorisation to speak publicly, confirmed the latest pricing revision and said the move is aimed at keeping domestic fuel prices competitive amidst global market volatility and persistent smuggling challenges.
The decision follows a December 6 meeting between the refinery’s Chairman, Aliko Dangote, and President Bola Tinubu. After the closed-door session, Dangote reiterated his commitment to ensuring that fuel prices in Nigeria remain reasonable and competitive, acknowledging that the refinery’s output growth should help counter imports and curb the incentive for smuggling. He noted that Nigeria’s petrol prices, even after the reduction, remain significantly lower than those in neighbouring West African countries, where petrol commonly sells for nearly double the price.
Industry responses to the new benchmark were swift. Several private depots, including Sigmund and TechnoOil, adjusted their ex-depot prices downward, though by smaller margins, aligning their rates with the broader market move. Analysts say the reductions could reshape pricing dynamics in Nigeria’s downstream petroleum sector, where competition between local refining capacity and imported products has intensified.
Despite the updated ex-depot pricing, retail pump prices remain higher, with filling stations in the Federal Capital Territory selling petrol between approximately N843 and N915 per litre due to added transport and operational costs. The gap between gantry and retail prices underscores ongoing cost pressures within the distribution and retail segments of the fuel market.
