Dangote Petroleum Refinery has announced a reduction in the ex-depot (gantry) price of Premium Motor Spirit (PMS), commonly known as petrol, from N835 per litre to N825 per litre, effective May 12, 2025. This marks the fourth price cut in 2025, following a reduction from N865 to N835 per litre in April, and earlier decreases from N950 to N890 in January and N890 to N825 in February. The latest N10 per litre adjustment, reported by outlets like Vanguard and Daily Post, aims to enhance customer value and solidify Dangote’s dominance in Nigeria’s downstream oil sector amid ongoing competition.
The price war intensified after the landing cost of imported petrol dropped to N774.72 per litre in March, undercutting Dangote’s then-N825 gantry price, prompting marketers to favor imports. The refinery’s 650,000 barrels-per-day facility responded with a N10 cut to N815 per litre on March 13, though the latest adjustment reverses part of that reduction. Industry stakeholders, including the Independent Petroleum Marketers Association of Nigeria, note that deregulation and lower global crude oil prices, with Brent crude below $60 per barrel, are driving competitive pricing. The Nigerian Midstream and Downstream Petroleum Regulatory Authority’s N10 levy raises the effective cost to N835 per litre, with pump prices expected to range between N860 and N895 across regions like Lagos, the South-West, North, and South-South/South-East.
Dangote’s strategy includes maintaining over 500 million litres of petrol in storage to ensure supply stability and support exports to Europe, America, and Asia, including recent jet fuel shipments to Saudi Arabia. The refinery has urged marketers to pass on the price benefits to consumers, aligning with President Bola Tinubu’s economic reforms for energy self-sufficiency. However, tensions with the Nigerian National Petroleum Company Limited (NNPCL) over naira-denominated crude sales, which expired in March, have complicated dynamics, with Dangote briefly halting naira-based sales due to currency mismatches. The Federal Executive Council’s directive to resume naira-for-crude deals aims to stabilize local refining and reduce import reliance.
Public sentiment on X reflects optimism about the price drop, with users like @NigeriaStories and @Ekiti_Princess1 celebrating the relief, though some, like @AdetunjiAdewolu, note the market’s volatility. Analysts suggest that sustained global oil price declines could push pump prices below N800 per litre, benefiting consumers but challenging importers facing losses estimated at N75 billion monthly.
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