Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, from ₦1,125 per litre to ₦1,075 per litre, in a move expected to reshape competition in Nigeria’s downstream petroleum market and further discourage fuel imports.
The refinery also cut its coastal loading price to ₦1,075 per litre and suspended its consortium marketing arrangement, thereby opening petrol loading at its gantry to all qualified marketers.
The suspended consortium included NIPCO Plc/11 Plc, MRS, TotalEnergies, Conoil, AA Rano, AYM Shafa, Rainoil/Eterna, Ardova Plc, NNPC Retail and other participating marketers.
Industry sources said the latest pricing strategy is designed to consolidate the refinery’s market position by making locally refined petrol more competitive than imported products, while expanding access to supplies for independent and major marketers.
According to the sources, the decision to allow all qualified marketers to load products directly from the refinery is expected to boost competition, improve nationwide product distribution and enhance supply efficiency across the deregulated downstream petroleum sector.
The adjustment comes at a time when international crude oil prices have remained under pressure, creating room for refiners to review product prices downward in line with changing market fundamentals.
Analysts said the reduction is also consistent with recent calls by the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for petroleum product prices to reflect prevailing market realities under the deregulated pricing framework.
They noted that the new ex-depot price is likely to intensify pressure on fuel importers and private depot operators, many of whom may be compelled to lower their prices to remain competitive in an increasingly domestic refining-driven market.
Checks by AJERAP indicate that the new pricing could trigger another round of reductions in depot prices across Lagos, Warri, Port Harcourt and other distribution hubs, with motorists expected to benefit through lower retail pump prices if marketers pass on the savings.
The latest development further reinforces Dangote Refinery’s growing influence on Nigeria’s petroleum products market, where its pricing decisions have increasingly become a key determinant of depot and retail fuel prices, while advancing the country’s drive towards self-sufficiency in refined petroleum products.
