Nigeria’s largest private refinery, Dangote Refinery, has reduced the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, to N1,200 per litre, reversing its recent increase amid a drop in global crude oil prices.
The refinery, owned by billionaire industrialist Aliko Dangote, had earlier adjusted prices upward in response to rising crude costs and exchange rate pressures. However, the latest development reflects a shift in global oil market dynamics, with crude prices experiencing a notable decline in recent days.
Industry analysts say the price adjustment is consistent with the refinery’s market-driven pricing model, which ties domestic fuel costs to international crude benchmarks. The move is expected to ease pressure on downstream operators and may gradually influence pump prices across the country if sustained.
Marketers and depot owners are already reacting to the new pricing, with some indicating readiness to adjust their retail rates depending on logistics and existing stock levels. However, experts caution that fluctuations in foreign exchange rates and supply chain costs could still impact final pump prices.
The development comes as Nigeria continues to rely on the Dangote Refinery to stabilise domestic fuel supply and reduce dependence on imports. Observers say consistent pricing adjustments in line with global trends could improve transparency and competition in the downstream petroleum sector.
Consumers, meanwhile, are hopeful that the reduction will translate into lower transport and commodity prices in the coming days.
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