A fresh reduction in petrol pricing by Dangote Petroleum Refinery & Petrochemicals is set to ripple across Nigeria’s downstream oil sector, offering some relief to marketers while highlighting ongoing supply challenges.
The refinery announced a downward review of its pricing structure, lowering its gantry price for Premium Motor Spirit (PMS) to N1,200 per litre, while fixing its coastal price at N1,153 per litre. The adjustment, according to company spokesperson Anthony Chiejina, comes against the backdrop of persistent volatility in global oil markets driven by geopolitical tensions in the Middle East.
The revised pricing is expected to influence fuel costs across the distribution chain, particularly for marketers sourcing products locally. Industry analysts say the new rates could prompt a recalibration of landing costs and potentially ease pump prices, which had surged in recent weeks amid rising crude prices.
Prior to the adjustment, petrol prices had climbed sharply—from about N840 per litre before the outbreak of tensions linked to the US-Iran conflict escalation 2026 to averages near N1,300 per litre. The latest cut from around N1,275 is therefore seen as a modest but significant step toward price stabilisation.
The coastal pricing component is also expected to improve supply logistics, particularly for distributors operating in southern Nigeria, by offering a competitive alternative for marine deliveries to depots.
However, the pricing relief comes amid mounting concerns over crude oil supply constraints affecting the refinery’s operations. Reports indicate that the facility has faced a substantial shortfall in crude deliveries—estimated at nearly 80 million barrels between October 2025 and mid-March 2026—well below its monthly requirement of about 19.77 million barrels for optimal capacity.
Data from within the refinery suggests that actual monthly deliveries have consistently fallen short, raising questions about supply arrangements with the Nigerian National Petroleum Company Limited. The situation has reportedly strained the implementation of the naira-for-crude deal, under which the refinery is expected to receive a steady supply of domestic crude.
Officials familiar with the matter argue that the shortfall runs counter to provisions of the Petroleum Industry Act, which prioritises meeting local refining needs before crude exports. Despite this, Nigeria has continued to export crude, further complicating supply dynamics for the Lekki-based facility.
The refinery’s management has also raised concerns that it is receiving significantly fewer crude cargoes than agreed, potentially limiting its ability to sustain production levels and stabilise fuel prices over the long term.
While the latest price cut may offer short-term relief for consumers and marketers, analysts say the broader impact will depend on resolving supply bottlenecks and ensuring consistent crude availability to support the refinery’s operations.