Dangote Refinery Cuts Petrol Price to ₦865 Per Litre in Landmark Price Adjustment
Move Sparks Hope for Downstream Sector Stability and Consumer Relief
In a significant development poised to impact Nigeria’s petroleum downstream sector, the Dangote Petroleum Refinery and Petrochemicals has officially reduced its ex-depot (gantry) price of Premium Motor Spirit (PMS), popularly known as petrol, to ₦865 per litre. The new pricing, which was communicated to marketers and stakeholders on Thursday, marks a downward adjustment from the previously fixed price of ₦880 per litre.
The refinery, which is Africa’s largest and the world’s largest single-train refinery, made headlines with this move, which industry experts have described as a step in the right direction for the local petroleum market.
Strategic Price Adjustment
A senior official of the Dangote Refinery confirmed the price review in an exclusive statement to The Nation, explaining that the decision aligns with the refinery’s commitment to price competitiveness and market stability. “Yes, the price has been adjusted. The new ex-depot price is now ₦865 per litre, down from ₦880,” the official stated.
The $20 billion integrated refinery complex, located in the Lekki Free Trade Zone in Lagos, is expected to play a transformative role in Nigeria’s quest for energy self-sufficiency. With a capacity of 650,000 barrels per day, it is designed to meet 100% of Nigeria’s refined product requirements, including petrol, diesel, aviation fuel, and other petroleum derivatives.
Relief for Marketers and Potential for Pump Price Review
Industry marketers have welcomed the reduction, suggesting that it could positively influence the pump price of petrol across various outlets in the coming weeks. Although the final retail price will depend on other variables such as transportation costs, logistics, and taxes, experts believe that a consistent supply at a lower ex-depot price could eventually bring some relief to consumers.
A downstream analyst, Sola Adeyemi, noted that this move could stabilize the volatile petrol pricing environment. “This is a welcome development. The reduction might seem marginal, but in a deregulated market like Nigeria’s, every naira counts. If Dangote can maintain steady supply at this rate or lower, we may begin to see a gradual decline in pump prices,” he said.
Potential Impact on Fuel Importation
With Dangote Refinery now actively supplying the domestic market, Nigeria’s dependence on imported refined fuel is expected to reduce drastically. The current administration has long emphasized the importance of refining crude oil domestically, not only to cut costs but also to create jobs and bolster the naira.
In recent weeks, there has been a revival of discussions around the naira-for-crude exchange model, a strategy aimed at stabilizing the local currency and maintaining consistent fuel supply without heavy reliance on dollar reserves. This pricing revision by the Dangote Group may be seen as a complementary move that supports such government strategies.
Market Reactions and Consumer Expectations
Reactions to the new price cut have been mixed. While many Nigerians are hopeful that this signals the beginning of sustained price reductions, others are cautiously optimistic, noting that pump prices have historically remained sticky despite changes in ex-depot rates.
“I think it’s a good step, but we need to see if filling stations actually reduce their prices,” said Olumide Bakare, a commercial driver in Lagos. “In the end, what matters to the common man is what he pays at the pump.”
The Road Ahead
As the Dangote Refinery ramps up operations, further adjustments to petrol pricing may follow, especially as the facility reaches optimal output levels. The refinery’s ability to supply refined petroleum products locally could become a game-changer, shielding the Nigerian economy from global oil shocks and exchange rate fluctuations.
Furthermore, consistent pricing reforms and supply chain improvements could pave the way for a more robust, investor-friendly downstream sector. Stakeholders are now watching closely to see how this pricing strategy plays out in the larger market landscape.
Conclusion
The reduction in ex-depot petrol price by the Dangote Petroleum Refinery to ₦865 per litre is more than just a numerical shift—it represents a significant milestone in Nigeria’s march toward refining independence and price stability. As the refinery continues to assert its dominance in the petroleum space, Nigerians can cautiously anticipate more market-friendly reforms that will hopefully translate into long-term economic relief.
