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Dangote Refinery Reduces Petrol Gantry Price to ₦825 per Litre Amid Intensifying Market Competition
In a significant move aimed at reshaping Nigeria’s downstream oil sector, Dangote Petroleum Refinery has announced a reduction in the ex-depot (gantry) price of Premium Motor Spirit (PMS), commonly known as petrol, to ₦825 per litre. This adjustment, effective from February 27, 2025, marks a ₦65 decrease from the previous price of ₦890 per litre.
The latest price cut by Dangote Refinery is part of a series of reductions implemented over recent months. In April 2025, the refinery decreased the ex-depot price from ₦865 to ₦835 per litre, reflecting a 3.5% reduction. These strategic pricing decisions are influenced by various factors, including fluctuations in global crude oil prices and the need to remain competitive in the domestic market.
The refinery’s management stated that the price adjustments are designed to provide relief to Nigerians, especially during periods of economic strain. By offering more affordable petrol prices, Dangote aims to ease the financial burden on consumers and stimulate economic activities across the country.
Dangote Refinery’s pricing strategy has significant implications for Nigeria’s oil market. The refinery, with a capacity of 650,000 barrels per day, is poised to reduce the nation’s reliance on imported petroleum products. By supplying petrol at competitive prices, Dangote is challenging existing market dynamics and encouraging other players to adjust their pricing structures accordingly.
This development is particularly noteworthy given the recent meeting between the Nigerian National Petroleum Company (NNPC) Limited and Dangote Refinery, where both parties pledged to promote healthy competition and energy security in the country. The collaboration between these entities is expected to foster a more robust and self-sufficient petroleum industry in Nigeria.
The reduction in petrol prices by Dangote Refinery is anticipated to have a ripple effect on the broader Nigerian economy. Lower fuel costs can lead to decreased transportation expenses, which in turn may reduce the prices of goods and services. This scenario is beneficial for consumers and can contribute to controlling inflation rates.
Moreover, the refinery’s operations are aligned with the federal government’s objectives of achieving energy independence and economic diversification. By producing and supplying refined petroleum products domestically, Dangote Refinery supports the nation’s goal of reducing import dependence and conserving foreign exchange reserves.
As Dangote Refinery continues to adjust its pricing strategies in response to market conditions, stakeholders in Nigeria’s oil and gas sector are closely monitoring the developments. The refinery’s ability to offer competitive prices while maintaining operational efficiency will be crucial in determining its long-term impact on the industry.
Furthermore, the ongoing collaboration between Dangote Refinery and NNPC Limited signifies a concerted effort to strengthen Nigeria’s energy sector. By fostering partnerships and encouraging healthy competition, these entities aim to create a more resilient and self-reliant petroleum industry that can meet the needs of the Nigerian populace.
