For the second time in April, Dangote Petroleum Refinery and Petrochemicals has reduced the ex-depot price of Premium Motor Spirit (PMS), bringing the cost down from ₦867 to ₦835 per litre.
The Lagos-based $20 billion refinery, which began large-scale domestic supply of refined fuel earlier this year, confirmed the price cut on Wednesday, with an official stating that a formal announcement would follow.
Checks on the industry monitoring platform, petroleumprice.ng, corroborated the change, showing a midweek adjustment in the gantry price of petrol to ₦835 per litre.
This development is expected to prompt a corresponding reduction in pump prices across select filling stations that have off-take agreements with the refinery. Stations operated by MRS Oil & Gas, Ardova Plc, and Heyden Petroleum are among those likely to reflect the new pricing, with prices potentially dipping below ₦900 per litre.
Government Engagement and Policy Support
The move comes on the heels of a high-level meeting last week between representatives of the Dangote Refinery and the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. At the conclusion of that meeting, the Federal Government reiterated its commitment to the naira-for-crude initiative a policy allowing local refiners to pay for domestic crude oil in naira rather than U.S. dollars.
The Finance Ministry clarified that the initiative is not a stopgap, but a long-term directive aimed at promoting self-sufficiency and easing pressure on Nigeria’s foreign exchange reserves. It also marks a break from earlier NNPC policies under former Group CEO Mele Kyari, who had previously suspended the initiative.
Nigeria’s Fragile Energy Landscape
Nigeria’s energy supply ecosystem has been mired in challenges for decades. With all four state-owned refineries non-operational until recently, the country was almost entirely dependent on imports for refined petroleum products — a burden shouldered largely by the Nigerian National Petroleum Company Limited (NNPCL).
The commissioning of the 650,000 barrels-per-day Dangote Refinery, located in the Lekki Free Trade Zone, has been widely touted as a game-changer. It is expected to drastically reduce Nigeria’s import bill, strengthen local capacity, and help stabilize fuel prices in the long term.
Since President Bola Tinubu’s removal of petrol subsidies in May 2023, pump prices have surged from an average of ₦200 per litre to between ₦950 and ₦1,000 per litre in many parts of the country exacerbating inflation and deepening hardship for millions of citizens.
With the refinery’s latest price reduction, some relief could be in sight for consumers who continue to rely heavily on petrol to power their vehicles and household generators amid an unreliable electricity supply.
Industry Implications
Analysts say the Dangote Refinery’s pricing strategy could reshape Nigeria’s downstream market dynamics, especially as more modular and public refineries gradually return to operation. Lower ex-depot prices may also intensify competition among independent marketers and influence future government policy decisions around fuel pricing.
Meanwhile, expectations remain high that sustained local refining and government support through policies like the naira-for-crude scheme could pave the way for more affordable fuel and greater energy security in the months ahead.
