The Dangote Petroleum Refinery & Petrochemicals has reduced the ex-depot price of Premium Motor Spirit (PMS) to ₦1,250 per litre from ₦1,275. Automotive Gas Oil (AGO) now sells for ₦1,700 per litre down from ₦1,800. The company announced the price adjustments in a statement, citing ongoing improvements in supply efficiency and domestic refining output. It attributed the cuts to its increasing capacity to supply refined products to the local market. The refinery currently operates at a 650,000-barrels-per-day capacity. Since it began operations, it has consistently delivered PMS and AGO to help reduce Nigeria's dependence on imported fuel. The statement said the price reductions are part of efforts to ease the cost burden on consumers and businesses reliant on fuel for transportation, power generation and industrial activities. The refinery reiterated its commitment to stabilising domestic supply and supporting economic activity through affordable fuel pricing. No timeline was given for further adjustments. The company did not disclose the exact volume of fuel supplied to depots following the price change. The adjustment applies strictly to ex-depot pricing and does not guarantee uniform retail prices nationwide.
The refinery cuts fuel prices while still operating below full capacity, raising questions about the sustainability of such reductions. Consumers may see temporary relief, but the ex-depot pricing model does not ensure lower pump prices across all retail outlets. Businesses relying on diesel for power generation are directly affected by any gap between depot and retail costs. The current pricing shift reflects supply-side gains, but not guaranteed savings for end users.
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