In a move that's sure to bring some relief to Nigerian drivers and businesses alike, the Dangote Petroleum Refinery has cut the ex-depot price of Premium Motor Spirit (PMS), or petrol, by ₦25 per litre. The new gantry price now stands at ₦774 per litre, down from the previous ₦799. This adjustment took effect immediately, as announced in a notice from the refinery's Group Commercial Operations Department.
The price drop comes at a time when the refinery is facing stiff competition from imported fuel. Recent data from the Major Energies Marketers Association of Nigeria indicates that the average landing cost of imported petrol is around ₦77 cheaper than Dangote's previous gantry price, potentially pushing retail prices even lower nationwide. Industry insiders suggest this could spark a broader price war, benefiting consumers who have been grappling with fluctuating fuel costs.
"This is to notify you of a change in our PMS gantry price from ₦799 per litre to ₦774 per litre," the refinery's notice to marketers stated simply. While the ex-depot price affects wholesalers, the ripple effect is expected to lower pump prices at filling stations across the country, though the exact reduction will depend on transportation and other logistics costs.
This isn't the first time Dangote has adjusted its prices. Just last month, the refinery hiked its gantry price to ₦799 from ₦699, which led to a spike in retail costs. Now, with imports undercutting local production, the refinery appears to be responding aggressively to maintain its market share.
Experts believe this development could stabilize fuel prices in the short term, especially as Nigeria continues to rely on a mix of local refining and imports. "Fuel price will likely come down again," one analyst noted in a recent report.
For Nigerians, particularly in urban centers like Lagos where fuel demand is high, this news couldn't come at a better time. With inflation still a concern, any dip in essential commodity prices is a welcome change. Stay tuned to ReportNaija for updates on how this affects pump prices in your area.