The Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit, commonly known as petrol, to N1,250 per litre from N1,275, a two per cent cut that reflects fresh shifts in global crude oil prices and growing competition in Nigeria’s deregulated fuel market.
The adjustment comes at a time when Nigeria’s downstream petroleum sector is still adjusting to full deregulation, where pump prices are no longer fixed by government but driven largely by global crude trends, exchange rates, and supply dynamics.
As a result, changes at the refinery level do not always translate immediately to retail prices.
Market checks show that despite the reduction, many filling stations across the country are still selling petrol above N1,350 per litre, with prices varying depending on location, logistics costs, and marketers’ inventories.
An official of the Dangote Petroleum Refinery confirmed the price adjustment, attributing it directly to the fall in international crude oil prices, which remains the refinery’s key feedstock.
“It is true that we have adjusted the gantry price of petrol due to the reduction in crude oil prices, which is our major feedstock. In a deregulated market, such adjustments should be expected,” the official said.
He added that pricing would remain responsive to market conditions as volatility in global energy markets continues.
“He added, “We are still monitoring developments and will continue to adjust prices in line with market realities.”
The refinery’s pricing move also comes amid broader macroeconomic developments, including Nigeria’s recent sovereign credit rating upgrade by S&P Global Ratings.
The ratings agency raised Nigeria’s long-term foreign and local currency ratings to “B” from “B-”, citing improved economic growth, stronger external balances, rising oil production, and increased domestic refining capacity as key positives supporting the country’s recovery outlook.
According to the refinery, its operations played a notable role in this improvement, particularly as domestic refining capacity expands and reduces dependence on imported fuel.
The company noted that its 650,000 barrels-per-day facility has reached near-full operational levels, contributing to improved supply stability and foreign exchange pressures.
“Significant refining capacity is now also online; Dangote Industries Ltd.’s large-scale refinery and petrochemical complex has ramped up to near its maximum capacity of 650,000 barrels per day,” the company stated.
Overall, the latest price cut highlights how Nigeria’s fuel market is becoming increasingly sensitive to global oil movements, even as domestic refining begins to reshape supply patterns and long-standing import dependence gradually declines.
