Nigeria’s downstream petroleum market is showing fresh signs of recalibration as Dangote Petroleum Refinery reduced its Premium Motor Spirit (PMS) gantry price by N25 per litre, lowering the ex-depot rate from N799 to N774 per litre. Industry analysts view the move as a strategic adjustment reflecting shifting cost structures, intensifying competition, and a gradual stabilisation of market dynamics in 2026.
The refinery communicated the revised pricing to marketers on Tuesday, stating that the new rate takes immediate effect. In a notice issued by its Group Commercial Operations Department, Dangote Petroleum Refinery and Petrochemicals FZE informed customers of the change, confirming the downward review in its PMS gantry price.
Independent checks by BrandIconImage on petroleumprice.ng confirmed that the updated price had already been reflected on industry pricing platforms, reinforcing the immediacy of the adjustment.
Alongside the price reduction, the refinery announced the conclusion of its PMS lifting incentive scheme. According to the notice, the bonus window closed at 12:00 a.m. on 10 February 2026, with credits for volumes lifted between 2 and 10 February—within previously communicated thresholds—set to be applied to marketers’ account statements.
Market watchers say the simultaneous price cut and withdrawal of volume-based incentives signal a shift in strategy. Rather than relying on short-term bonuses to drive uptake, the refinery appears to be moving toward a more stable and sustainable pricing framework as it consolidates its position in the domestic fuel market.
The latest adjustment comes against the backdrop of a turbulent pricing environment in 2025, following the full deregulation of Nigeria’s downstream sector and the removal of petrol subsidies. Throughout much of that year, PMS ex-depot prices swung widely, influenced by exchange rate volatility, global crude oil price movements, and heavy dependence on imported fuel. At different points, ex-depot prices ranged from about N700 to above N800 per litre, while pump prices rose even higher in many parts of the country.
The commencement of large-scale domestic supply from the Dangote refinery toward the end of 2025 helped ease some of these pressures. Increased local production moderated prices, particularly along coastal and southern supply corridors, reducing the dominance of import parity pricing in those regions.
At the start of 2026, Dangote’s PMS gantry price had climbed to N799 per litre, following a period during which petrol was sold at N699 per litre to Nigerian consumers over the festive season. The current reduction to N774 per litre suggests a combination of easing cost pressures, improving operational efficiency, and growing competition from alternative supply sources, including imported cargoes and anticipated output from modular refineries.
With a capacity of 650,000 barrels per day, Dangote Petroleum Refinery remains Africa’s largest single-train refinery and a central pillar of Nigeria’s strategy to cut fuel imports and conserve foreign exchange. Since beginning PMS supply to the domestic market, the facility has increasingly influenced downstream pricing trends, often serving as a benchmark for ex-depot rates nationwide.
As the post-subsidy market continues to evolve, analysts expect pricing decisions by the Dangote refinery to remain a key indicator of broader shifts in Nigeria’s fuel supply and demand balance.