Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
Lagos, Nigeria — Dangote Petroleum Refinery & Petrochemicals has announced a reduction in the ex‑gantry price of Premium Motor Spirit (PMS), commonly called petrol, lowering it by ₦75 from the previous rate of ₦1,275 to ₦1,200 per litre. The adjustment also affects the coastal price, bringing it to around ₦1,153 per litre. The move is expected to influence fuel pricing across Nigeria and may ease cost pressures for marketers and consumers amid ongoing volatility in global oil markets.
The refinery’s decision follows a period of dynamic pricing as it responds to fluctuations in global crude oil costs and domestic market conditions. In early March, the refinery had briefly raised its ex‑gantry price above ₦1,100 per litre in reaction to rising crude prices, and later adjusted downward as international oil prices softened. These adjustments reflect efforts to align refinery pricing with market signals while considering broader industry realities.
As Africa’s largest single‑train refining facility, located in Lekki, Lagos State, Dangote Refinery has played a pivotal role in reshaping Nigeria’s fuel market since reaching full operational capacity. Before the refinery’s production ramp‑up, Nigeria relied heavily on fuel imports to meet domestic demand. With the refinery now supplying most of the nation’s petrol needs and exporting to neighboring countries, its pricing decisions carry substantial weight for the downstream sector.
Despite the ex‑gantry price reduction, motorists may not see the full benefit immediately, as final pump prices also depend on regulatory levies, transportation from depots to retail outlets, storage charges, and marketers’ margins. These components can add significantly to the cost per litre that consumers ultimately pay.
Petrol prices in Nigeria have experienced sharp fluctuations in recent months. Surging global crude prices pushed marketers to increase their own prices, leading to retail fuel costs exceeding ₦1,300 per litre in many cities. The recent price reduction offers potential relief for households and transport operators who have been affected by these increases.
The timing of the adjustment comes amid broader shifts in regional fuel supply chains. Disruptions to cheap petrol imports from West African ports have diminished the flow of low-cost imported fuel into Nigeria. In response, Dangote Refinery has expanded its export footprint across Africa, supplying refined products to countries such as Ghana, Cameroon, Togo, and Tanzania, while domestic fuel imports have decreased significantly.
Nigeria’s regulatory environment and interactions between private refiners and government-backed entities have been a focus of debate. Recent tensions between the Dangote Group and national regulatory agencies over pricing, import licenses, and oversight have highlighted the complexities of coordinating domestic refining capacity with market dynamics.
The refinery’s ex‑gantry price cut is being closely watched by independent marketers and consumer groups, who are calling for transparency to ensure adjustments are fairly reflected in retail petrol prices. Analysts suggest that consistent downward revisions by a major producer like Dangote could encourage competitive pricing among marketers, potentially leading to more affordable fuel at the consumer level if logistical and regulatory costs are effectively managed.
As Nigeria’s largest private refinery continues to calibrate its pricing approach in response to global market forces, its role in shaping the country’s energy landscape remains critical. How this latest ex‑gantry price reduction translates into tangible relief for Nigerians at petrol stations in the coming weeks will be a key indicator of evolving market dynamics.
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