Nigeria’s crude oil grade, Bonny Light, saw an 8.3% increase in January, according to data from the Organisation of the Petroleum Exporting Countries (OPEC). OPEC’s February Monthly Oil Market Report (MOMR) revealed that Bonny Light’s price rose from $74.22 per barrel in December to $80.14 in January, reflecting an 8% growth, compared to a 5.5% increase in December 2024.
At the same time, Nigeria’s crude oil production saw a slight rise in January. Production increased from 1.485 million barrels per day (mb/d) in December to 1.539 mb/d in January, according to OPEC’s direct sources.
This development coincides with ongoing competition between the federal government, through the Nigerian National Petroleum Corporation Limited (NNPCL), and the Dangote Refinery for dominance in the Premium Motor Spirit (PMS) market. In December, NNPCL reduced the ex-depot price of PMS from N1,020 to N899 in Lagos and N970 in other states.
In response, Dangote Refinery announced it would absorb a N16 billion loss by refunding N65 per litre to marketers, ensuring that Nigerians benefit from lower fuel prices. The refinery stated that it would refund customers purchasing PMS at prices higher than the advertised rates from its key partners—AP (Ardova Plc), Heyden, or MRS—across Nigeria.
This move follows the refinery’s recent reduction of its gantry price from N890 per litre to N825 per litre. Dangote Refinery confirmed that it would refund N65 per litre on over 200,000 metric tonnes of PMS purchased by marketers at the previous price of N890 per litre, before the new rate of N825 per litre was implemented.
The refinery emphasized that this initiative is in line with President Bola Tinubu’s Renewed Hope Agenda, aimed at stimulating the economy and ensuring that Nigerians are the primary beneficiaries of the price reductions.
