Dangote cuts petrol ex-depot price by N50 to N1,075/litre

The Dangote Petroleum Refinery has implemented a second price reduction for its Premium Motor Spirit (PMS), commonly known as petrol, lowering the ex-depot price from N1,125 to N1,075 per litre. This N50 decrease, representing a 4.4% drop, follows a previous cut within the last seven days and is expected to intensify competition within Nigeria's downstream petroleum industry.

In addition to the ex-gantry price adjustment, the refinery has aligned its coastal loading price to the new N1,075 per litre rate, eliminating the earlier price difference between coastal and gantry sales. A senior official, speaking anonymously, confirmed that the new pricing regime took immediate effect. "The refinery has reduced the ex-gantry price of PMS from N1,125 per litre to N1,075 per litre. The coastal loading price has also been adjusted to N1,075 per litre," the official stated, adding that the move aims to make products more accessible and competitive.

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The refinery has reduced the ex-gantry price of PMS from N1,125 per litre to N1,075 per litre. The coastal loading price has also been adjusted to N1,075 per litre. This is part of the refinery’s efforts to make products more accessible and competitive in the market.

Further enhancing market access, the Dangote refinery has suspended its 20-member consortium arrangement. Product loading is now open to all qualified marketers, a decision intended to "deepen market access and ensure seamless distribution of products across the country," according to the source. This move could prompt other fuel stations to adjust their pump prices downward, particularly those sourcing directly from the refinery.

The price adjustments occur amid increasing competition and the Nigerian government's efforts to ensure consumers benefit from the deregulation of the petroleum market. The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has previously emphasized that fuel prices in a deregulated market are determined by market forces and competition, not government directives. The Nigerian Midstream and Downstream Petroleum Regulatory Authority also maintains that prices must remain cost-reflective under deregulation, while warning against profiteering.

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The consortium arrangement has been cancelled. Loading at both the gantry and coastal terminals is now open to all marketers that meet the necessary requirements. The objective is to deepen market access and ensure seamless distribution of products across the country.