Dangote Refinery slashes petrol ex-depot price by ₦50 to ₦1,075 per litre

The Dangote Petroleum Refinery has lowered its ex-gantry price of Premium Motor Spirit, otherwise called petrol, from N1,125 per litre to N1,075 per litre.

This latest change amounts to N50 or 4.4 percent drop in price compared to the former and is likely to spark more competition in Nigeria’s downstream petroleum industry.

This reduction in the ex-gantry price by N50 per litre, is the second price drop in seven days from N1,175 to N1,125 per litre.

Research by The PUNCH on Thursday revealed that the refinery had synchronized its coastal loading price to N1,075 per litre, eliminating the previously existing disparity between the coastal and ex-gantry prices.

According to a senior staff of Dangote Petroleum Refinery, who spoke anonymously, since he did not have the authorization to speak on the issue, the new pricing scheme became effective instantly.

“The refinery has reduced the ex-gantry price of PMS from N1,125 per litre to N1,075 per litre. The coastal loading price has also been adjusted to N1,075 per litre. This is part of the refinery’s efforts to make products more accessible and competitive in the market,” the official said.

The official further disclosed that the refinery had suspended its 20-member consortium arrangement, opening product loading to all qualified marketers.

“The consortium arrangement has been cancelled. Loading at both the gantry and coastal terminals is now open to all marketers that meet the necessary requirements. The objective is to deepen market access and ensure seamless distribution of products across the country,” the source added.

Checks on petroleumprice.ng also confirmed the new ex-depot price of N1,075 per litre at the Dangote refinery.

The latest reduction could compel filling stations to adjust their pump prices downward in the coming days, especially those sourcing products directly from the refinery.

The development comes amid increasing competition in the downstream sector and renewed efforts by the Federal Government to ensure that Nigerians benefit from the deregulation of the petroleum market.

Earlier this week, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, insisted that fuel prices in a deregulated market would be determined by market forces and competition rather than government directives.

The minister had maintained that the era of government-fixed fuel prices was over, stressing that increased domestic refining capacity would naturally lead to more competitive pricing and improved energy security.

Similarly, the Nigerian Midstream and Downstream Petroleum Regulatory Authority has repeatedly stated that petrol prices must remain cost-reflective under the deregulation regime.

The authority recently warned against profiteering and arbitrary pricing practices in the downstream market, insisting that operators must adhere to the principles of fair competition and transparency.

Also, the Federal Competition and Consumer Protection Commission has consistently advocated competitive market practices, saying consumers should benefit from price reductions arising from improved supply conditions and increased competition.

The latest price cut by Dangote adds to a series of N50 reductions implemented by the refinery since it commenced large-scale petrol supply to the domestic market.

(PUNCH)