The Dangote Petroleum Refinery has lowered the gantry price of its Premium Motor Spirit, popularly known as petrol, from ₦877 per litre to ₦828 per litre, marking a 5.6 percent reduction.
This reduction comes even as global crude oil prices rose to an average of $64 per barrel yesterday, up from $62 per barrel the previous day.
Vanguard reported that the price cut is linked to a strengthened crude supply agreement between Dangote Refinery and NNPC Limited under the naira-for-crude framework.
NNPC Ltd will supply the 650,000-barrels-per-day refinery with five December-loading crude shipments, which include Amenam, Bonny Light, Forcados, and Qua Iboe.
Petroleumprice.ng added, “The price adjustment is expected to bring some relief to fuel marketers and consumers nationwide, following weeks of elevated pump prices. Depot operators in Lagos confirmed that loading at the new price commenced early Friday, with expectations of a corresponding drop at retail outlets in the coming days.”
Despite the reduction, the price remains below import parity, according to a report by S&P Global Commodity Insights presented at the Major Energy Marketers Association of Nigeria conference in Lagos on Thursday.
The report noted that as of October 17, 2025, Dangote’s gantry price was ₦877 per litre, which was still below the average “into-tank” cost of imported fuel in Lagos and the ship-to-ship value at Lome, Togo.
It emphasized that this pricing gap highlights Dangote’s cost advantage in the domestic market, even as international crude prices fluctuate amid sanctions on Russian oil producers and soft global demand.
Additionally, the report observed that Nigeria’s fuel imports have fallen below 200,000 barrels per day, compared to roughly 500,000 barrels per day in early 2023.
S&P Global also cautioned that strong regulatory oversight remains vital to maintain market transparency, fair competition, and consumer protection in a liberalized sector.
The report further pointed out operational challenges in domestic refineries, noting that the nation’s downstream transition is shaped by deregulated pricing, declining imports, and the introduction of new refining capacity.
