Dangote Refinery has announced a reduction in the gantry price of Premium Motor Spirit (PMS) by N25 per litre, bringing the ex-depot rate down from N799 to N774 per litre.
This adjustment was communicated in a notice issued by the Group Commercial Operations Department of Dangote Petroleum Refinery and Petrochemicals FZE to marketers, effective immediately. “This is to notify you of a change in our PMS gantry price from N799 per litre to N774 per litre,” the notice stated.
Additionally, the refinery informed marketers that its PMS lifting incentive has concluded. This change is expected to enhance the competitiveness of locally refined products in the market.
Tuesday’s reduction in ex-depot prices marks the latest adjustment in the cost of this essential commodity, which observers indicate is largely influenced by fluctuations in the exchange rate and global crude oil prices, among other factors. Last year, the ex-depot cost of PMS fluctuated between N700 and over N800 per litre, significantly impacting the pump price.
The Dangote refinery, with a production capacity of 650,000 barrels per day, is Africa’s largest and commenced petrol deliveries in 2024. In January of that year, the facility, constructed by Nigerian billionaire Aliko Dangote, began producing diesel and aviation fuel.
Nigeria has historically swapped crude worth billions of dollars for petrol, which it subsidised for years to maintain low domestic prices. However, fuel imports and subsidies have significantly drained foreign exchange reserves at a time when the country faces dwindling oil revenues and foreign currency shortages.
Since taking office in May 2023, President Bola Tinubu has ended long-standing fuel subsidies and floated the naira currency as part of his economic reforms aimed at attracting foreign investment and fostering long-term growth. Nonetheless, in the short term, fuel prices have doubled, with inflation soaring to a three-decade high of 34 percent in June 2024.
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