In a move aimed at easing fuel distribution costs and supporting domestic supply efforts, Dangote Petroleum Refinery has announced a further reduction in the ex-depot price of Premium Motor Spirit (PMS), bringing the rate down from ₦835 to ₦825 per litre.
The new pricing structure, which took effect immediately, is expected to influence downstream market dynamics and potentially lower pump prices across Nigeria—provided that independent marketers and distributors pass the cost reduction on to consumers.
The ex-depot price, often referred to as the gantry price, is the rate at which petrol is sold by the refinery to marketers before it reaches retail stations.
Price Drop Reflects Efforts to Boost Local Fuel Supply
This latest adjustment marks the second consecutive price cut by the Dangote Refinery, Africa’s largest integrated refining facility, as it ramps up operations. The refinery began limited petrol distribution earlier this year and is increasingly positioned as a key player in Nigeria’s push to reduce reliance on imported refined petroleum products.
Faith Esifiho, reporting for BusinessDay, noted that industry experts view the price reduction as a strategic signal. It underscores the refinery’s long-term goal of stabilizing fuel supply and influencing market competition.
“If marketers pass on the savings to end-users, it could offer consumers modest relief at the pump amid broader economic pressures,” said one analyst familiar with domestic fuel logistics.
The development comes at a time when Nigeria is seeking greater energy self-sufficiency and aims to cut its petrol import bill, which remains one of the highest in Africa. With a capacity to refine 650,000 barrels of crude oil per day, the Dangote Refinery has been touted as a game-changer in reshaping Nigeria’s energy landscape.
