The retail price of Premium Motor Spirit (PMS), also known as petrol, is set to drop below ₦1,000 per litre following a price reduction by Dangote Refinery. The Independent Petroleum Marketers Association of Nigeria (IPMAN) projects a price of ₦950 per litre in Lagos and ₦990 in the Federal Capital Territory (FCT), Abuja.
Chief Chinedu Ukadike, IPMAN’s National Publicity Officer, confirmed the expected reduction during an interview, citing improved logistics and adjustments in the ex-depot price as key drivers of the decrease.
The Dangote Refinery announced a new ex-depot price of ₦899.50 per litre, a 7% reduction from the previous price of ₦970 per litre set in November. This marks the second price cut within a month, reflecting the refinery’s commitment to easing costs for consumers.
Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Group, revealed additional holiday incentives, including a “buy one, get one on credit” offer for purchases backed by bank guarantees.
Chiejina emphasized the refinery’s role in improving access to premium quality, competitively priced petroleum products while reducing Nigeria’s reliance on substandard imports.
Industry leaders and stakeholders have welcomed the price reduction. Abubakar Maigandi, IPMAN Chairman, expressed optimism that the reduction would ease transportation costs and improve economic activities. “This development will benefit the masses as transportation costs, a major driver of inflation, will likely reduce,” Maigandi noted.
Dr. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), commended the move as a significant step towards reducing the cost of living during the festive season. He called for further reforms, including privatizing the Port Harcourt Refinery to foster competition and improve service delivery.
The Dangote Refinery, the largest single-train refinery in the world with a capacity of 650,000 barrels per day, continues to reshape Nigeria’s energy landscape. However, reports indicate that the Nigerian National Petroleum Company Limited (NNPCL) fell short of its crude supply commitments to the refinery in December, delivering only 202,000 barrels per day instead of the agreed 385,000 barrels.
As Dangote ramps up operations, experts predict a shift in West African crude trade flows. The refinery’s potential to diversify its crude slate, incorporating Angolan heavy grades and other West African crudes, signals a transformative period for the region’s oil market.
The recent price adjustments and operational developments reflect a concerted effort to stabilize Nigeria’s downstream sector, enhance energy security, and alleviate economic pressures on Nigerians. As Dangote Refinery scales production and fosters competition, the country moves closer to achieving a more sustainable and efficient petroleum market.
