By Ayo Kehinde
Nigeria’s downstream petroleum sector received a welcome boost on Friday, as Dangote Petroleum Refinery and Petrochemicals announced a reduction in its gantry price for premium motor spirit (PMS), popularly known as petrol, to ₦1,200 per litre, raising optimism for lower pump prices across the country.
The development was disclosed in a statement by the spokesperson of the Dangote Group, Anthony Chiejina, who said the refinery also set its coastal price at ₦1,153 per litre. The adjustment represents a ₦75 drop from the previous gantry price of ₦1,275 per litre.
According to Chiejina, the price cut reflects a downward review in the refinery’s pricing structure and is expected to positively influence fuel supply costs across Nigeria’s distribution network, including depots and retail outlets.
“The adjustment marks a downward review in the refinery’s pricing template and is expected to ripple across the downstream sector, potentially easing supply costs for marketers and influencing pump prices at retail outlets”, he stated.
The reduction comes against the backdrop of heightened uncertainty in global oil markets, largely driven by geopolitical tensions in the Middle East, which continue to impact shipping routes, insurance premiums, and supply chains.
The refinery had recently increased its petrol price from ₦1,175 per litre to ₦1,245 per litre, highlighting the dynamic nature of pricing in response to both local and international factors.
With the new ₦1,200 per litre rate, marketers are expected to reassess their sourcing strategies, with many likely to favour local procurement over imports due to improved cost efficiency. This shift could also help ease pressure on foreign exchange demand.
In addition, the coastal price of ₦1,153 per litre is expected to enhance marine supply logistics, particularly for distributors operating along Nigeria’s southern corridors, providing a more flexible and competitive supply route.
