Dangote Petroleum Refinery has reduced the ex-gantry price of Premium Motor Spirit (PMS), commonly known as petrol, to ₦774 per litre, marking a ₦25 drop from the previous price of ₦799.
The adjustment takes effect nationwide immediately, with marketers already notified of the new rate.
Key Details of the Price Review
According to a statement issued by the refinery on Tuesday:
“This is to notify you of a change in our PMS gantry price from ₦799 per litre to ₦774 per litre.”
The company said the reduction is aimed at enhancing the competitiveness of locally refined petrol, especially as international import pricing remains higher.
Local Refining vs Import Costs
The refinery revealed that the current landing cost of imported PMS from Lome stands at approximately ₦793 per litre, compared with its newly revised ex-depot price of ₦774.
This means locally refined petrol is now about ₦19 cheaper per litre than imports, reinforcing the refinery’s positioning as a cost-effective domestic supply source.
Industry observers note that pricing at the gantry level directly affects downstream retail pump prices, though final prices may still vary depending on distribution logistics, transportation costs, and marketer margins.
Competitive Signal to Importers
The move signals intensified competition in Nigeria’s deregulated downstream oil sector. By pricing below import parity, the refinery is effectively applying downward pressure on imported cargoes.
If sustained, the price adjustment could influence:
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Retail pump price reductions in some regions
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Reduced dependence on imported PMS
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Improved forex conservation
Further shifts in global crude pricing and exchange rate dynamics will continue to shape future pricing decisions.
For now, the ₦774 benchmark sets a new reference point in Nigeria’s evolving petrol market.
