Dangote Refinery has reduced the price of petrol and diesel for distribution to marketers. As of Wednesday, the gantry price for Premium Motor Spirit (PMS) dropped to ₦1,165 per litre from ₦1,215, a ₦50 reduction, while Automotive Gas Oil (AGO) fell to ₦1,570 per litre from ₦1,650, down by ₦80. The refinery, with a capacity of 700,000 barrels per day, did not state a reason for the price cut. The adjustment is expected to influence retail pump prices across Nigeria, potentially lowering costs for consumers and businesses.
Industry observers note that falling landing costs could lead to further price reductions. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), recently said that if landing costs continue to decline, pump prices may drop more. The current adjustment follows ongoing volatility in Nigeria's fuel market, where pricing is influenced by import costs, exchange rates, and supply chain logistics. No government agency or official commented on the price change.
The refinery has not indicated whether additional adjustments will follow.
The price drop occurs without any stated rationale from Dangote Refinery, despite its market influence. How this affects retail prices in practice depends on decisions by individual marketers, which may not align with national expectations. The association's projection about further declines hinges on landing costs, a factor outside the refinery's control.
Editorial note: AI-assisted opinion, not established fact. Full disclaimer →
