The Dangote Petroleum Refinery dropped its petrol gantry price on Friday from N828 to N699 per litre, marking the latest in a series of price reductions that could bring pump prices to as low as N750 per litre—the lowest since Nigeria fully deregulated the petroleum sector in 2024.
The 650,000-barrel-per-day refinery’s price cut comes a few days after the company promised Nigerians that it would supply enough fuel to avoid queues in filling stations during the Yuletide season. Marketers who spoke anonymously described the latest price drop as a “shocker” to those who still import Premium Motor Spirit.
The Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, confirmed the cut on Friday, while officials of the Dangote refinery confirmed the development unofficially. According to Petroleumprice.ng, while Dangote dropped its ex-depot price to N699, other traders still retain prices above N800 per litre.
The Crude Oil Refineries Association of Nigeria commended the Dangote Petroleum Refinery for its recent milestone in ramping up domestic refining of PMS and effecting a significant reduction in the ex-depot price of petrol. According to CORAN, this achievement, coming at a time when Nigerians are preparing for the Yuletide season, offers much-needed relief to households and businesses across the country.
In a statement by its spokesman, Eche Idoko, CORAN noted with pride that the Dangote refinery “continues to blaze the trail in Nigeria’s refining landscape.” The association expressed appreciation to President Bola Tinubu “for the support extended to domestic refineries, especially through ongoing reforms and policy direction aimed at strengthening Nigeria’s energy security.”
CORAN strongly appealed to the Presidency to sustain reforms in the oil and gas sector with renewed vigor, particularly in ensuring adequate feedstock supply to local refineries, providing fiscal incentives to investors, and protecting the domestic refining industry as a strategic national asset.
The association noted that “since the administration of late President Umaru Yar’Adua, this is the first time Nigerians are witnessing a notable reduction in fuel prices during the festive season, accompanied by the assurance of availability and zero scarcity. This moment is both historic and encouraging.”
However, the Dangote refinery has been consistent in cutting petrol prices, though this has always been a major concern for importers and depot owners in the sector. The Depot and Petroleum Product Marketers Association of Nigeria previously kicked against the refinery’s price cuts, with Executive Secretary Olufemi Adewole stating that the reductions were strategically timed when other importers had active cargoes at sea or in tanks, creating price shocks that undermined competition.
Dangote’s price reduction is expected to force other marketers, including the Nigerian National Petroleum Company Limited, to cut pump prices. Before the Dangote refinery began petrol production last year, the NNPC was the sole determiner of fuel prices. Petrol prices had surged to about N1,200 per litre last year when the NNPC completely removed subsidies, but the Dangote refinery implemented repeated price cuts to bring prices to current levels.
Source: punchng.com