The Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N1,275 to N1,250 per litre. The latest adjustment represents a reduction of N25 per litre and comes amid a sustained decline in crude oil prices in the international market. The move is expected to provide some relief to marketers and could eventually influence pump prices across parts of the country if the reduction is passed on to consumers. Officials familiar with the development said the refinery reviewed its pricing structure in response to changing market conditions. The reduction reflects the lower cost of crude oil, which remains the primary raw material used in refining petrol. According to a refinery official, the price adjustment is consistent with the realities of a deregulated petroleum market where product prices are expected to respond to fluctuations in global oil prices. “It is true that we have adjusted the gantry price of petrol due to the reduction in crude oil prices, which is our major feedstock. In a deregulated market, such adjustments should be expected,” the official said. He added: “We are still monitoring developments and will continue to adjust prices in line with market realities.” Despite the reduction at the refinery gate, checks indicate that retail prices have remained largely unchanged in many parts of the country. Several filling stations are still dispensing petrol at prices above N1,350 per litre, with rates varying depending on location, transportation costs and individual marketers. Industry observers say the gap between ex-depot and retail prices may persist for some time as marketers work through existing stock purchased at higher rates before implementing any fresh pricing changes. The latest cut comes as competition continues to grow within Nigeria’s downstream petroleum sector following the removal of fuel subsidies and the full deregulation of the market. Operators have increasingly adjusted prices in response to shifts in crude oil costs, foreign exchange movements and supply conditions.Nigeria travel guide Meanwhile, the refinery has continued to position itself as a major contributor to Nigeria’s economic recovery and energy security efforts. The company recently highlighted its role in strengthening the country’s economic outlook following an upgrade of Nigeria’s sovereign credit rating by S&P Global Ratings. According to the refinery, the rating agency cited stronger economic performance, improved external balances, rising oil production and increased domestic refining capacity among the factors supporting the country’s recovery. The refinery noted that its operations have significantly reduced Nigeria’s dependence on imported petroleum products while improving foreign exchange conservation. It also pointed to the gradual ramp-up of its 650,000 barrels-per-day refining complex, which is now operating close to full capacity. The company said the facility has become a key part of Nigeria’s industrial and economic landscape, helping to boost domestic supply of refined products and improve the country’s balance of payments position.
