Nigeria’s downstream petroleum sector has recorded another notable price adjustment as the Dangote Petroleum Refinery reduced its ex-depot (gantry) price of Premium Motor Spirit (PMS), commonly known as petrol, from N1,275 per litre to N1,250 per litre.
The latest reduction represents a two per cent decrease and comes at a time when competition among fuel suppliers is intensifying in Nigeria’s deregulated petroleum market. Industry observers say the move reflects changing market realities, particularly the sustained decline in crude oil prices on the international market.
Checks across the industry confirmed that the price review has taken effect at the refinery level, although the impact has yet to be fully reflected at retail outlets nationwide.
A refinery official confirmed the development, explaining that the adjustment was directly linked to movements in global crude oil prices, which remain the refinery’s primary feedstock.
“It is true that we have adjusted the gantry price of petrol due to the reduction in crude oil prices, which is our major feedstock. In a deregulated market, such adjustments should be expected,” the official said.
The source further stressed that the refinery remains committed to aligning its pricing structure with prevailing market conditions.
“We are still monitoring developments and will continue to adjust prices in line with market realities.”
Despite the reduction at the refinery gate, many motorists may not immediately benefit from lower pump prices. Findings indicate that several filling stations across the country continue to sell petrol above N1,350 per litre, with prices varying depending on location, transportation costs, and individual marketers’ pricing strategies.
Industry stakeholders note that while ex-depot price reductions often create room for lower retail prices, there is usually a lag before adjustments are reflected at filling stations. Factors such as existing stock purchased at higher prices and distribution costs can influence the pace of implementation.
The latest development highlights the growing influence of market forces in Nigeria’s downstream oil sector following the removal of fuel subsidies and the adoption of a deregulated pricing framework. Analysts believe increased local refining capacity, especially from the Dangote Refinery, is gradually reshaping fuel supply dynamics and introducing stronger competition into the market.
Meanwhile, the Dangote Petroleum Refinery has also linked its operations to recent positive developments in Nigeria’s economy following an upgrade of the country’s sovereign credit rating by S&P Global Ratings.
According to the company, the ratings agency upgraded Nigeria’s long-term foreign and local currency sovereign credit ratings from “B-” to “B”, citing stronger economic growth prospects, improved external balances, rising crude oil production, and expanding domestic refining capacity.
The refinery stated that S&P specifically acknowledged the role of increased local refining in strengthening Nigeria’s balance of payments position and improving economic resilience.
In its assessment, the company noted that the global ratings agency identified the operational expansion of the 650,000 barrels-per-day Dangote Petroleum Refinery and Petrochemicals complex as one of the major factors supporting the country’s economic recovery.
“Significant refining capacity is now also online; Dangote Industries Ltd.’s large-scale refinery and petrochemical complex has ramped up to near its maximum capacity of 650,000 barrels per day,” the company stated.
The development underscores the refinery’s growing significance not only in Nigeria’s fuel supply chain but also in broader economic indicators, as policymakers and investors continue to monitor the impact of local refining on foreign exchange demand, import reduction, and overall economic stability.