Amanze ChinonyeThe Dangote Petroleum Refinery has reduced its ex-depot price of Premium Motor Spirit (PMS) from ₦850 to ₦820 per litre, a move expected to intensify competition in Nigeria’s fuel market and potentially ease pump prices for consumers.
Group Chief Branding and Communications Officer, Anthony Chiejina, announced the change on Tuesday, saying it reflects the company’s “commitment to national development” and a steady fuel supply. The refinery will also deploy 4,000 CNG-powered trucks from August 15 to cut distribution costs and improve efficiency.
Join our WhatsApp ChannelThe cut positions Dangote among the most competitive suppliers in the country, with other private depots selling between ₦820 and ₦870 per litre. While the adjustment could pressure retail prices downwards, filling stations in Abuja still sold petrol between ₦885 and ₦970 per litre on Tuesday.
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The Dangote Refinery is Africa’s largest single-train facility, with a capacity of 650,000 barrels per day. It began supplying petrol to the Nigerian market in early 2025 after months of producing diesel and aviation fuel. Since entering the PMS market, Dangote has repeatedly adjusted its ex-depot prices. dropping from as high as ₦950 per litre earlier this year to about ₦825 forcing competitors, including private depots and the Nigerian National Petroleum Company (NNPC) Limited, to review their pricing.
This aggressive pricing has triggered what industry observers call a downstream price war, which, while temporarily beneficial to consumers, has sparked debate over long-term competition and the risk of market dominance similar to Dangote’s position in the cement industry. The latest reduction comes amid falling global crude oil prices and the removal of fuel subsidies, factors that have lowered production costs.
Estimates put the cost of producing a litre of petrol in Nigeria at about ₦740, leaving Dangote room for profit while still undercutting rivals. Analysts warn that if competitors cannot match the refinery’s pricing over time, market concentration could limit consumer benefits in the future.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
