By David Akinmola
In a move set to ease pressure on the downstream oil market, the Dangote Petroleum Refinery has again slashed the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, to ₦820 per litre, down from the previous rate of ₦940.
This fresh downward adjustment, confirmed by downstream sector operators on Tuesday, marks the second price reduction in under two weeks by the 650,000 barrels-per-day facility — Africa’s largest privately owned refinery.
Relief Amid Soaring Retail Prices
The ex-depot price refers to the rate at which petrol is sold by the refinery to oil marketers and depot owners before it gets to filling stations. With the new pricing, marketers are expected to retail petrol at between ₦850 and ₦870 per litre, depending on location and logistics costs.
In some parts of Lagos and Ogun states, pump prices that recently peaked at over ₦900 per litre are beginning to dip slightly, with some independent stations adjusting to between ₦850–₦860/litre as of Wednesday morning.
Why the Price Cut?
A senior official at the refinery, who spoke on condition of anonymity, explained that the price reduction was made possible by improved efficiency in product handling, logistics, and clearer cost calculations now that full-scale operations are stabilizing.
“We are trying to align our pricing closer to what’s economically sustainable for the market and ultimately for Nigerians,” the official said.
Mixed Reactions from Marketers
Independent petroleum marketers have welcomed the reduction, calling it a “positive signal” for eventual price moderation.
“It’s a bold move and shows that Dangote is listening to the realities on ground. If this continues, we expect retail prices to settle below ₦850 in the coming weeks,” said Chinedu Ukadike, a national official of the Independent Petroleum Marketers Association of Nigeria (IPMAN).
However, some industry observers say the reduction is still not significant enough to reflect on mass affordability. “While this is a step in the right direction, the current pump prices are still far above the reach of average Nigerians,” noted oil and gas analyst Kemi Ojo.
No NNPC Imports Yet
The Nigerian National Petroleum Company Limited (NNPC), which used to dominate fuel supply, has yet to resume large-scale petrol imports following subsidy removal and deregulation. This has left private refiners like Dangote as major suppliers in the open market, with prices unregulated.
Background
The Dangote Refinery began PMS supply to marketers in April 2025, amid high expectations that local refining would curb Nigeria’s long-standing reliance on imports and bring down fuel prices. At full capacity, the refinery is expected to meet 100% of Nigeria’s petrol demand and export surplus volumes.
So far, Dangote has also been supplying diesel and aviation fuel, with diesel prices falling sharply from over ₦1,700/litre to around ₦1,000–₦1,100/litre earlier this year following local production.
Looking Ahead
With rising operational stability and supply chain refinement, stakeholders are hopeful that continued price adjustments by the Dangote Refinery could drive more competition and reduce inflationary pressure tied to energy costs.
For consumers grappling with high living expenses, the latest move offers a glimmer of relief — but many still await deeper, more sustained price cuts.
