Omanghana
The Dangote Petroleum Refinery has announced another reduction in the ex-gantry price of Premium Motor Spirit (PMS), commonly known as petrol, lowering the price by ₦50 per litre to ₦1,075 per litre.
The latest adjustment marks the refinery’s fourth petrol price reduction within a month, bringing the cumulative decrease to more than ₦200 per litre since May 30, 2026.
The move is expected to provide further relief to fuel marketers and consumers as competition in Nigeria’s downstream petroleum sector continues to intensify.
Ex-Gantry Price Falls to ₦1,075 Per Litre
Under the new pricing structure, the ex-gantry price has been reduced from ₦1,125 per litre to ₦1,075 per litre.
Dangote Refinery also announced that it has aligned its coastal loading price with the ex-gantry rate, meaning both now stand at ₦1,075 per litre. The change eliminates previous regional pricing differences and is intended to simplify fuel distribution across the country.
Refinery Opens Supply to Independent Marketers
Alongside the latest price reduction, the refinery has suspended its previous consortium-based marketing arrangement.
This means that all qualified independent petroleum marketers can now purchase products directly from the refinery’s gantry, a move expected to increase competition, improve product availability, and strengthen domestic fuel distribution nationwide.
Industry observers believe the policy could encourage greater market efficiency while providing more purchasing options for fuel marketers.
Fuel Prices Decline Across Multiple Products
The reduction in petrol prices is part of a broader strategy by the Dangote Refinery to lower the prices of refined petroleum products as production costs ease.
Over the past month, the refinery has implemented cumulative price reductions across several fuel categories:
- Petrol (PMS): Reduced by more than ₦200 per litre since May 30.
- Diesel (AGO): Cumulative reduction of approximately ₦300 per litre.
- Aviation Fuel (Jet A1): Cumulative reduction of about ₦520 per litre.
The multi-product price cuts are expected to benefit motorists, transport operators, airlines, manufacturers, and other industries that rely heavily on petroleum products.
Why Fuel Prices Are Falling
According to the Dangote Petroleum Refinery, the latest reductions are being driven by lower production costs resulting from the arrival of cheaper crude oil cargoes.
The company explained that refinery pricing does not immediately reflect daily movements in global crude oil markets because crude purchases are typically made several weeks before processing begins.
As higher-priced crude inventories acquired during previous market peaks are gradually depleted, newer and less expensive shipments are entering the production cycle, allowing the refinery to reduce its selling prices.
Dangote said it intends to continue passing these cost savings on to consumers whenever market conditions permit.
Potential Impact on Nigeria’s Fuel Market
The continued reduction in fuel prices is expected to intensify competition in Nigeria’s downstream petroleum sector and could influence pump prices across the country as marketers adjust to lower wholesale costs.
Economists say sustained price declines could help ease transportation costs, reduce business operating expenses, and contribute to moderating inflation if the savings are passed on to consumers.
With the refinery continuing to ramp up production and expand access for independent marketers, industry stakeholders will be closely watching whether additional price reductions follow in the coming weeks.
Source: Omanghana
