Adjustment to N774 per litre takes immediate effect as refinery ends lifting incentive and responds to market forces…..
Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit (PMS) by 25 naira per litre, lowering the ex-depot rate from 799 naira to 774 naira per litre.
The price adjustment was communicated to marketers in a notice issued by the Group Commercial Operations Department of Dangote Petroleum Refinery and Petrochemicals FZE, stating that the new rate takes immediate effect.
“This is to notify you of a change in our PMS gantry price from 799 naira per litre to 774 naira per litre,” the notice stated.
The refinery also informed marketers that its PMS lifting incentive has been discontinued, noting that the latest price adjustment is expected to improve the competitiveness of locally refined petroleum products.
The reduction announced on Tuesday marks another shift in the pricing of the essential commodity, with market observers attributing recent fluctuations largely to movements in the exchange rate and global crude oil prices, among other factors.
Throughout last year, the ex-depot price of petrol ranged mostly between 700 naira and above 800 naira per litre, a trend that significantly influenced retail pump prices nationwide.
The Dangote refinery, with a production capacity of 650,000 barrels per day and regarded as the largest in Africa, commenced petrol supply in 2024. Earlier, in January of the same year, the facility built by Nigerian industrialist Aliko Dangote began producing diesel and aviation fuel.
For years, Nigeria exchanged crude oil valued at billions of dollars for imported petrol, which was heavily subsidised to keep domestic fuel prices low. However, fuel importation and subsidy payments placed significant pressure on the country’s foreign exchange reserves, especially amid declining oil revenues and persistent foreign currency shortages.
Since assuming office in May 2023, President Bola Tinubu has implemented major economic reforms, including the removal of long-standing fuel subsidies and the floating of the naira. The administration says the measures are aimed at attracting investment and supporting long-term economic stability.
In the immediate term, however, fuel prices surged, with petrol costs more than doubling, while inflation climbed to a three-decade high of 34 percent in June 2024.
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