Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
The Dangote Petroleum Refinery has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), slashing it by ₦50 to ₦1,075 per litre. This marks the fourth price cut in just one month, bringing the cumulative reduction since May 30, 2026, to over ₦200 per litre . The refinery also aligned its coastal loading price with the ex-gantry price and suspended its 20-member consortium arrangement, opening product loading to all qualified marketers .
However, many Nigerians have met the announcement with frustration and skepticism, arguing that the reductions are far too small and too slow compared to the sharp increases witnessed in the past. Social media has been flooded with complaints that while prices often skyrocket overnight, the cuts are barely trickling down to the pump. The common refrain is that fuel prices "increase with jet speed and reduce with snail speed."
Critics point to the rapid escalation of fuel prices following the removal of the petrol subsidy in May 2023, when prices jumped from around ₦200 to over ₦600 per litre in a matter of days. Subsequent market forces and the floating of the naira further pushed prices to over ₦1,000 per litre. In contrast, the current reductions, while welcomed in principle, are seen as merely nibbling away at the steep rises.
The refinery attributed the latest price cut to its commitment to passing lower production costs to consumers, even though it is still refining crude oil bought at much higher international prices . The company explained that its pricing decisions are anchored on actual production economics and inventory costs rather than short-term fluctuations in international oil markets . It disclosed that the average landed cost of crude processed stood at approximately $124.80 per barrel in May and $95.25 per barrel in June, compared with the current international benchmark of about $71.01 per barrel .
Despite the refinery's explanation, many consumers remain unconvinced. The Federal Competition and Consumer Protection Commission (FCCPC) had earlier warned oil marketers against exploitation, noting that current petrol pump prices do not match the global crude cost reduction . The FCCPC's Executive Vice Chairman, Tunji Bello, had expressed concern over what he described as a one-sided response to changes in crude oil prices, where marketers often respond swiftly by hiking pump prices whenever crude prices rise, yet consumers are made to wait indefinitely for significant benefits when prices fall.
The latest price cut by Dangote adds to a series of N50 reductions implemented by the refinery since it commenced large-scale petrol supply to the domestic market . While industry stakeholders said the new pricing could lead to fresh reductions in depot prices and, ultimately, lower pump prices for motorists if marketers pass the savings on to consumers, many Nigerians remain wary that the full benefits may not reach their pockets . For now, the debate continues: is the refinery doing enough, or are Nigerians being short-changed once again?
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