Dangote Refinery has announced a fresh reduction in the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, slashing its gantry price from N1,175 per litre to N1,125 per litre.
The latest adjustment, which takes immediate effect, represents a N50 per litre decrease and marks the second petrol price reduction by the refinery within two weeks.
Confirming the development on Thursday, the spokesperson for the Dangote Group, Anthony Chiejina, said the refinery had reviewed its pricing in line with prevailing market conditions.
“It is true our petrol gantry price was reduced by N50 per litre,” Chiejina stated.
The latest cut follows an earlier N75 per litre reduction announced on June 16, bringing the total decrease in Dangote Refinery’s ex-depot petrol price to N125 per litre within a fortnight.
The refinery also reduced its coastal supply price, lowering it from N1,495,215 per metric tonne to N1,428,165 per metric tonne, a decrease of N67,050 per metric tonne.
Industry stakeholders say the development is expected to reduce procurement costs for fuel marketers and distributors, potentially paving the way for lower pump prices across the country.
The downward review comes amid a decline in global crude oil prices following the easing of geopolitical tensions in the Middle East. Benchmark crude prices, which surged during recent regional conflicts, have fallen to between $69 and $73 per barrel, reducing feedstock costs for refiners.
Energy analysts noted that the refinery’s decision reflects changing market realities and underscores the growing role of domestic refining in shaping fuel pricing in Nigeria.
The previous N75 per litre reduction triggered a wave of retail price adjustments by marketers and filling stations nationwide, and market observers expect the latest cut to place additional pressure on retailers to further lower pump prices in the coming days.
Currently, petrol prices in Abuja and surrounding areas range from N1,241 to N1,305 per litre, depending on location and marketer. However, analysts say the extent of any retail price reduction will depend on factors such as existing stock levels, transportation costs, operational expenses, and market competition.
Despite the recent cuts, many consumers have continued to call for more significant reductions, arguing that pump prices remain substantially higher than levels recorded before the spike in global oil prices linked to tensions in the Middle East.
Before the crisis, petrol sold for between N800 and N900 per litre in several parts of the country.
Analysts believe further reductions may be possible if crude oil prices remain stable and exchange rate pressures ease. However, they cautioned that fuel prices remain vulnerable to fluctuations in global oil markets, foreign exchange movements, logistics costs, and government policies affecting the downstream petroleum sector.
For motorists, businesses, and households, attention is now focused on how quickly marketers will pass on the benefits of the latest ex-depot price reduction to consumers, potentially providing relief from rising transportation and energy costs.
