Dangote Petroleum Refinery has announced a fresh reduction in the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, bringing the rate down from N840 to N820 per litre.
The announcement was made in a statement released on Tuesday by Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Industries Limited. According to the statement, the new pricing structure takes immediate effect.
“This adjustment is part of our commitment to cushion the effects of rising energy costs and make fuel more affordable for Nigerians,” the statement read.
A Relief for Marketers and Consumers
The ex-depot price is the rate at which marketers purchase petroleum products from depots before distributing them to filling stations. With this reduction, petrol pump prices are expected to drop marginally, depending on the marketer’s margins and transportation costs.
Industry analysts say this move by Africa’s largest refinery could trigger competitive pricing and help ease inflationary pressures across various sectors of the economy.
More Reductions Possible?
This latest development follows the recent commencement of Dangote Refinery’s distribution of locally refined petrol, marking a significant milestone in Nigeria’s quest to reduce its reliance on fuel imports.
There are speculations that further price cuts may be implemented as operations ramp up and supply becomes more stable.
