Dangote Petroleum Refinery has reduced the gantry price of its Premium Motor Spirit (PMS), commonly known as petrol, from ₦877 to ₦828 per litre, marking a 5.6% decrease.
The reduction comes even as global crude oil prices rose slightly to an average of $64 per barrel. Industry sources indicate that the price cut is linked to a strengthened crude supply arrangement between Dangote Refinery and the Nigerian National Petroleum Corporation (NNPC) under the naira-for-crude framework.
NNPC is set to provide the refinery, which has a capacity of 650,000 barrels per day, with five crude shipments in December, including Amenam, Bonny Light, Forcados, and Qua Iboe grades. The move is expected to ease costs for fuel marketers and consumers nationwide, with depot operators in Lagos already loading at the new price from early Friday. Retail outlets are anticipated to reflect the adjustment in the coming days.
Industry analysts note that Dangote’s pricing remains below import parity. According to a report by S&P Global Commodity Insights, Dangote’s gantry price continues to be lower than the average cost of imported fuel, giving the refinery a significant domestic cost advantage even amid fluctuating international crude prices influenced by sanctions on Russian oil producers and weak global demand.
The report also highlights that Nigeria’s fuel imports have declined sharply, falling below 200,000 barrels per day compared with roughly 500,000 barrels per day in early 2023. However, S&P Global emphasized the importance of strong regulatory oversight to ensure transparency, fair competition, and consumer protection as the domestic refining sector continues its transition.
