Victor EzejaDangote Petroleum Refinery has further reduced the ex-depot price of its Premium Motor Spirit (PMS), commonly known as petrol, from N835 to N825 per litre.
This reflects a N10 reduction per litre. The new price, which takes immediate effect, comes as a relief amid Nigeria’s ongoing efforts to stabilise fuel supply and reduce dependence on imported petroleum products.
Join our WhatsApp ChannelThe refinery has implemented a series of reductions in its petrol price in recent months.
On 16 April, the $20 billion facility slashed the ex-depot price of its petrol from N865 to N835, reflecting a 3.5 per cent reduction.
The changes in price are due to fluctuations in global crude oil prices, coupled with intense competition in the downstream.
The refinery’s management indicated that the pricing adjustments are intended to bring relief to Nigerians, particularly during times of economic hardship.
Dangote hopes that by giving lower petrol prices, it can relieve people’s financial burdens and encourage economic activity throughout the country.
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Dangote Refinery’s cut in petrol prices is expected to have an impact on the Nigerian economy as a whole. Lower fuel costs can lead to lower transportation costs, which can reduce the price of goods and services. This scenario benefits consumers and helps to keep inflation under control.
Furthermore, the refinery’s operations are in line with the Federal Government’s goals of establishing energy independence and economic diversification. Dangote Refinery helps the country reduce its reliance on imports and conserve foreign exchange reserves by producing and supplying refined petroleum products domestically.
Prime Business Africa gathered that marketers are paying N835 per litre for products but receive a N10 refund after loading and evacuating them from the refinery.
Observers said the new pricing arrangement, which seems like a covert price modification, has enabled its customers and marketers to sell the product at a cheaper price range of N830 to N835, undercutting importing marketers and private depot owners.
READ ALSO: NNPCL Raises Petrol Price To N950/litre
As Dangote Refinery continues to change its pricing strategy in reaction to market conditions, stakeholders in Nigeria’s oil and gas sector are keenly watching the situation. The refinery’s capacity to provide competitive prices while remaining operationally efficient will be critical in evaluating its long-term impact on the industry.
Furthermore, Dangote Refinery’s continued engagement with NNPCL demonstrates a deliberate commitment to enhance Nigeria’s energy sector. By developing collaborations and supporting healthy competition, these organisations hope to build a more robust and self-sufficient petroleum industry capable of meeting the requirements of Nigerians.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
