Dangote Petroleum Refinery has announced another reduction in the ex depot price of Premium Motor Spirit (PMS), lowering the price by ₦50 per litre to ₦1,075 from ₦1,125 as competition intensifies in Nigeria’s downstream petroleum sector. The latest adjustment marks the refinery’s fourth petrol price cut within one month and brings the cumulative reduction since the end of May to more than ₦200 per litre.
The refinery said the price review reflects improvements in production economics and the gradual processing of lower cost crude oil inventories rather than daily fluctuations in international crude oil prices. It explained that crude used in refining is often purchased weeks or months before processing, making immediate price adjustments based on global market movements impractical.
The latest reduction is expected to put further downward pressure on retail pump prices as petroleum marketers adjust their pricing to reflect the lower ex depot cost. Industry observers believe the move will deepen competition among fuel suppliers and provide some relief to consumers and businesses grappling with high transportation and energy costs.
Market analysts said sustained reductions in petrol prices could help moderate inflationary pressures by lowering logistics and distribution costs across several sectors of the economy. They added that cheaper fuel would improve operating conditions for manufacturers, transport operators and small businesses that rely heavily on petrol powered equipment.
The refinery also disclosed that it has significantly reduced the prices of diesel and Jet A1 aviation fuel over the same period, underscoring its commitment to making locally refined petroleum products more competitive while supporting energy security and reducing dependence on imports.
The development comes as Nigeria’s deregulated petroleum market continues to evolve, with industry stakeholders expecting market forces and increased domestic refining capacity to play a greater role in determining fuel prices. Analysts believe that if international crude oil prices remain favourable and lower cost feedstock continues to enter the refinery’s production cycle, further price moderation could be recorded in the weeks ahead.
SOURCE: VANGUARD
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