In a significant development, Dangote Refinery has announced a reduction in its ex-depot price of Premium Motor Spirit (PMS), slashing the cost from ₦990 to ₦970 per litre. This move, aimed at easing the financial burden on Nigerians, was disclosed in a statement by Anthony Chiejina, the Group Chief Branding and Communication Officer of Dangote Refinery.
The statement highlighted the company’s commitment to supporting Nigerians and fostering economic stability. “As the year comes to an end, this is our way of appreciating the good people of Nigeria for their unwavering support in making the Refinery a reality,” Chiejina said. He added that the price reduction also serves as gratitude to the government for its support in promoting domestic enterprise.
The refinery assured consumers of the high quality and sustainability of its products. “While maintaining strict standards, we aim to ramp up production to meet and surpass domestic fuel consumption needs, ensuring no shortfall in supply,” the statement read.
Price Adjustment Expected at Pumps
The ₦20 cut in Dangote Refinery’s ex-depot price is anticipated to influence retail petrol prices soon. Currently, independent petroleum marketers sell petrol at ₦1,080 to ₦1,090 per litre in Lagos, while major marketers offer it at ₦1,060 to ₦1,080. At Nigerian National Petroleum Company Limited (NNPCL) outlets, petrol is priced at ₦1,025 per litre.
Retail marketers have expressed readiness to adjust their prices but indicated that logistics and consultations with the refinery must be finalized first. The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) stated that its members are working to determine the practical implications of the ex-depot price reduction.
“We need to work out the logistics and engage in discussions with Dangote Refinery before implementing new pump prices,” said PETROAN National President Dr. Billy Harry. “This is not an arbitrary decision—it requires real value assessment.”
Collaborative Efforts to Streamline Distribution
The relationship between Dangote Refinery and independent marketers has seen significant progress in recent weeks. After earlier concerns about pricing strategies, the Independent Petroleum Marketers Association of Nigeria (IPMAN) reached an agreement with the refinery to lift petroleum products directly. This arrangement aims to bypass intermediaries like NNPCL and reduce operational costs.
Last month, Aliko Dangote, the President of the Dangote Group, revealed that the refinery had over 500 million litres of petrol in stock. However, marketers previously raised concerns that the refinery’s pricing was higher than other suppliers, creating challenges for independent retailers.
The recent price reduction is seen as a response to these concerns and part of broader efforts to stabilize fuel prices nationwide. IPMAN National President Alhaji Abubakar Maigandi, though unavailable for comment, is expected to play a key role in further negotiations.
Looking Ahead
As Nigerians await a drop in pump prices, the move by Dangote Refinery represents a step toward mitigating the country’s fuel price challenges. With ongoing discussions between stakeholders and promises of direct supply, the refinery is positioning itself as a key player in shaping Nigeria’s energy landscape.
