By Frontline Reporters
The Dangote Petroleum Refinery has slashed the ex-gantry price of Premium Motor Spirit (PMS), popularly known as petrol, by another N50 per litre, reducing the price from N1,125 to N1,075 per litre in a move expected to further reshape competition in Nigeria’s deregulated downstream petroleum market.
The latest reduction, which took effect immediately, represents a 4.4 per cent decrease and marks the refinery’s second price cut within one week. In the past seven days alone, the ex-gantry price has fallen by N100 per litre, dropping from N1,175 to N1,125, and now to N1,075 per litre.
The development is expected to trigger another round of pump price reductions by filling stations sourcing products directly from the refinery, offering potential relief to motorists and businesses grappling with high fuel costs.
In another significant policy shift, the refinery has also harmonised its coastal loading price with the ex-gantry price at N1,075 per litre, eliminating the previous price disparity between coastal and gantry sales.
A senior official of the Dangote Petroleum Refinery, who confirmed the development, said the decision formed part of efforts to improve market access, enhance competition and make petroleum products more affordable.
According to the official, the refinery has also discontinued its 20-member marketers’ consortium arrangement, opening product loading at both its gantry and coastal terminals to all qualified marketers.
“The refinery has reduced the ex-gantry price of PMS from N1,125 per litre to N1,075 per litre, while the coastal loading price has also been adjusted to N1,075 per litre. This is aimed at making products more accessible and competitive,” the source said.
He added that qualified marketers would now have direct access to purchase products without going through the previous consortium arrangement.
“The consortium has been discontinued. Loading is now open to all marketers that meet the required conditions. The objective is to deepen market access and ensure seamless distribution of petroleum products nationwide,” the official explained.
Industry sources said the move is expected to broaden competition among marketers, improve product availability and strengthen the ongoing liberalisation of Nigeria’s downstream petroleum sector.
Market checks also confirmed the new ex-depot price of N1,075 per litre, reinforcing expectations that retail fuel prices may begin to decline in the coming days as marketers adjust to the lower acquisition cost.
The latest adjustment comes amid increasing competition in the downstream market and renewed emphasis by the Federal Government on allowing market forces to determine fuel prices under the deregulation policy.
Earlier this week, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, reiterated that the era of government-controlled fuel pricing had ended, insisting that competition among refiners and marketers would ultimately benefit consumers through lower prices and improved energy security.
Similarly, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has consistently maintained that petrol prices must remain cost-reflective under the deregulated regime, while warning operators against profiteering and anti-competitive practices.
The Federal Competition and Consumer Protection Commission (FCCPC) has also repeatedly urged petroleum marketers to pass on the benefits of improved supply and increased competition to consumers through fair pricing.
The latest reduction by Dangote Refinery adds to a series of price cuts introduced since the facility commenced large-scale supply of petrol to the domestic market, reinforcing its growing influence on fuel pricing and competition across Nigeria’s petroleum industry.
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2026-07-03
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