By Andrew Haruna
The Bureau Newspaper
In a move set to reshape Nigeria’s downstream oil and gas pricing dynamics, Dangote Petroleum Refinery has announced a strategic reduction in the ex-depot (gantry) price of Premium Motor Spirit (PMS), commonly known as petrol. The price is now set at N835 per litre, down from N865 per litre, representing a 3.5% price cut.
This adjustment aligns with the recent dip in global crude oil prices, which have plummeted from over $70 per barrel to $64, offering breathing space for downstream operators and fuel consumers in Nigeria.
Second Consecutive Price Drop
This is the second time in recent weeks the refinery has lowered its gantry price, having earlier reduced it from N880 to N865 per litre. Despite this, oil marketers failed to reflect the savings at the pump, a situation that has sparked public criticism and regulatory concerns.
With the latest cut, expectations are high that fuel retailers will align their pump prices accordingly, passing the benefit of domestic refining and global market dynamics to end users.
Implications for Nigeria’s Energy Economy
Situated in the Lekki Free Zone, the 650,000 barrels-per-day Dangote Refinery is Africa’s largest single-train refinery and a flagship investment in Nigeria’s energy sector. Its refining capability is expected to:
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Reduce Nigeria’s dependence on imported refined petroleum products
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Save billions in foreign exchange
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Lower inflationary pressure on energy costs
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Stabilize the country’s supply chain for PMS and other petroleum products
This latest gantry price cut is poised to significantly influence:
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Retail pump prices across Nigeria
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Transport and logistics costs
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Household purchasing power
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The Central Bank’s forex policy and inflation control efforts
Market-Responsive Pricing: A New Era?
With global crude prices trending downward, this move by Dangote signals the dawn of market-sensitive fuel pricing — a drastic shift from the previously rigid and opaque petroleum pricing model. Experts believe it could pave the way for a competitive energy economy, especially following Nigeria’s fuel subsidy removal policy.
Stakeholder Reactions
Industry stakeholders are urging oil marketers and distributors to reflect the gantry reductions in retail prices, warning that failure to do so undermines the benefits of domestic refining and local production efficiency.
If fully implemented, Nigerians could begin to see:
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Reduced fuel pump prices
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Lower costs of goods and services
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Improved national energy independence
