Dangote Petroleum Refinery and Petrochemicals has reduced its gantry price for Premium Motor Spirit (PMS), commonly known as petrol, to ₦1,200 per litre, a move expected to influence fuel costs across Nigeria’s downstream petroleum sector.
The development was disclosed in a statement issued on Friday by the spokesperson for the Dangote Group, Anthony Chiejina, who also revealed that the refinery fixed its coastal price at ₦1,153 per litre.
The price review comes amid growing uncertainty in the global oil market, largely driven by geopolitical tensions in the Middle East, which continue to affect supply chains and shipping costs.
Chiejina stated, “Dangote Petroleum Refinery & Petrochemicals has reduced its gantry price for petrol to ₦1,200 per litre and its coastal price to ₦1,153 per litre, a move that comes amid ongoing tensions in the Middle East that continue to influence global oil markets.
“The adjustment marks a downward review in the refinery’s pricing structure and is expected to influence fuel supply costs across distribution channels, including depots and retail outlets.”
₦75 Reduction from Previous Price
The latest adjustment represents a reduction of ₦75 from the previous gantry price of ₦1,275 per litre.
The refinery had earlier increased its petrol price from ₦1,175 per litre to ₦1,245 per litre before the recent downward review.
Chiejina further explained that the new pricing template is expected to ease pressure on fuel marketers and potentially translate to lower pump prices for consumers.
According to him, “price adjustment represents a downward review in the refinery’s ex-depot pricing and is expected to ripple across Nigeria’s downstream sector, potentially easing supply costs for marketers and influencing pump prices at retail outlets.
He added that lower ex-depot prices typically translate into reduced pump prices.”
Middle East Tensions Impact Global Oil Market
The Dangote Group spokesperson also expressed concern over the impact of geopolitical tensions on global oil supply dynamics.
He noted that “Middle East crisis has introduced renewed uncertainty into global oil markets, affecting shipping routes, insurance premiums, and supply chains”.
“For Nigeria, the presence of large-scale local refining capacity is increasingly seen as a stabilising factor, offering some insulation from external shocks even as global market pressures persist,” he added.
Impact on Marketers, Distribution
With the new ₦1,200 per litre gantry price, petroleum marketers are expected to review their landing costs, particularly those sourcing products locally rather than relying on imports.
Similarly, the coastal price of ₦1,153 per litre is expected to influence marine deliveries to coastal depots, offering distributors operating along southern corridors an alternative supply option.
Industry observers believe the price adjustment could trigger competitive pricing among marketers and potentially lead to a reduction in pump prices nationwide.