In a fresh move that signals deepening competition in Nigeria’s downstream oil sector, Dangote Petroleum Refinery has again reviewed downward the ex depot price of Premium Motor Spirit (PMS), popularly known as petrol, reducing it from N835 to N825 per litre.
This latest adjustment comes barely weeks after the 650,000 barrels per day facility Africa’s largest single train refinery cut the gantry price of petrol from N865 to N835. The downward trend, according to industry analysts, reflects an ongoing market driven strategy by the refinery to cement its dominance in the local fuel supply landscape, following months of anticipation over its impact on the country’s pump price dynamics.
Sources within the company disclosed that the new price benchmark is aimed at offering greater value to distributors and end users, especially in light of mounting concerns over fuel affordability and the cost of transportation across Nigeria. The management of the refinery noted that this decision aligns with its commitment to stabilizing fuel prices locally, even as global oil markets remain volatile.
Dangote Refinery, which commenced fuel distribution to the Nigerian market earlier this year, has continued to play a pivotal role in reshaping the country’s petroleum supply chain, reducing reliance on fuel imports and gradually positioning Nigeria for refined product self sufficiency.
Industry players and marketers have welcomed the development, describing it as a timely relief and a pointer to the benefits of local refining. Many believe the pricing competition spurred by Dangote’s presence will compel other players, including importers, to adjust prices downward potentially translating to lower pump prices for motorists and other consumers.
While the Nigerian government continues to regulate the sector with minimal interference in pricing under a deregulated framework, stakeholders insist that domestic refining capacity remains the most sustainable path to achieving energy affordability and national fuel security.
With the latest reduction, Dangote Refinery appears determined to lead that transformation one strategic price cut at a time.
