The Dangote Petroleum Refinery has further reduced its gantry price for Premium Motor Spirit (PMS) to ₦825 per litre from ₦835 in a strategic move aimed at easing pricing pressure across Nigeria’s downstream oil sector and stimulating competitive alignment among depot operators.
The price adjustment, announced late last week, marks the second reduction in recent weeks as the 650,000 barrels-per-day refinery continues to ramp up domestic fuel supply and assert its influence over the national energy market.
Industry stakeholders anticipate that this downward revision may influence pump prices across the country, especially for independent marketers and transport operators currently struggling with cost pass-throughs.
Analysts note that the refinery’s consistent downward revisions signal a deliberate effort to realign the pricing structure of petroleum products in Nigeria following the discontinuation of the fuel subsidy regime and the federal government’s emphasis on import substitution.
“This is a market correction mechanism. Dangote’s decision reflects its strategic leverage as a domestic refiner and its intent to stabilise fuel prices amidst volatile import-linked benchmarks,” said a downstream analyst familiar with the development.
The move comes amid growing concerns from marketers under the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), who argue that the price reductions are placing pressure on margins and creating an uneven competitive environment.
Some depot operators allege that frequent post-sale price adjustments have left them absorbing losses to remain operational.
In response, senior officials at Dangote Refinery maintain that their pricing is based on current production economics and output efficiency. They argue that the domestic refining model offers cost advantages over reliance on imported petroleum products, especially as the naira continues to experience fluctuations in the FX market.
The latest reduction also comes as Nigeria’s petrol consumption patterns continue to adjust post-subsidy.
According to recent figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), daily fuel importation dropped from 44.6 million litres in August 2024 to 14.7 million litres by April 2025, largely due to the operational impact of local refining.
Aliko Dangote, during a recent briefing, reiterated that Nigeria’s true domestic fuel requirement remains well below publicised figures, claiming the refinery is capable of producing 104 million litres daily with only 46 million litres needed to meet national demand.
The remaining volume is allocated for export across Africa, reinforcing the refinery’s role in regional energy integration.
“With this pricing model, we are not only ensuring domestic supply stability but also discouraging unnecessary fuel imports that undermine local production,” said a Dangote official who spoke under condition of anonymity.
Market watchers believe the continued price moderation could compel more fuel marketers to review logistics costs and procurement strategies, particularly those with legacy reliance on imports or third-party depots.
As the refinery scales closer to full operational capacity, the industry is expected to witness further realignments in pricing, distribution dynamics, and supply chain models.
