Dangote Lowers Petrol Ex-Depot Price by N50 Again as Competition Grows

The Dangote Petroleum Refinery has reduced its ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, by N50 per litre to N1,075, while simultaneously opening fuel loading to all qualified marketers in a move that could further reshape competition in Nigeria's deregulated downstream petroleum market.

The latest adjustment, which took immediate effect, represents the refinery's second petrol price reduction within a week, following an earlier cut from N1,175 to N1,125 per litre.

The new price also aligns the refinery's coastal loading and gantry rates at N1,075 per litre, eliminating the previous pricing difference between the two channels.

A senior official of the refinery, who craved anonymity said the price review forms part of efforts to make petroleum products more competitive and accessible.

"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.

Refinery ends consortium arrangement

Beyond the price reduction, the refinery has discontinued its 20-member consortium arrangement, allowing all marketers that meet the required conditions to load products directly from its gantry and coastal terminals.

According to the refinery official, the decision is intended to widen market access and improve product distribution nationwide.

"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.

The combined effect of lower ex-depot prices and wider access to refinery products is likely to increase competitive pressure on fuel marketers and could trigger reductions in retail pump prices, particularly among outlets sourcing directly from the refinery.

The latest move comes as the Federal Government continues to defend the deregulation of the downstream petroleum sector, arguing that increased domestic refining capacity will allow competition, rather than government intervention, to determine fuel prices.

Earlier this week, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, reiterated that the era of government-fixed petrol prices had ended, maintaining that market forces would ultimately determine pricing under the deregulated regime.

Similarly, the Nigerian Midstream and Downstream Petroleum Regulatory Authority has maintained that petrol prices should remain cost-reflective while cautioning operators against profiteering and anti-competitive practices. The Federal Competition and Consumer Protection Commission has also consistently argued that consumers should benefit whenever stronger competition and improved supply conditions lead to lower fuel prices.

The latest adjustment extends a series of price reductions introduced by Dangote Refinery since it commenced large-scale domestic petrol supply, reinforcing its growing influence on fuel pricing and competition in Nigeria's downstream petroleum market.