In a significant move set to impact the downstream petroleum sector, the Dangote Refinery has reduced its ex-depot price for Premium Motor Spirit (PMS), commonly referred to as petrol, from ₦950 per litre to ₦890. This price revision, which takes effect from Saturday, February 1, 2025, underscores the company’s responsiveness to global market trends and domestic economic considerations.
Announcing the development, the Group Chief Branding and Communications Officer of Dangote, Anthony Chiejina, attributed the price adjustment to shifting market dynamics.
“This strategic recalibration is a reflection of evolving global energy and crude oil market conditions, coupled with the recent decline in international oil prices,” Chiejina remarked in an official statement released on Saturday night.
He further noted that only a few weeks ago, the refinery had implemented a slight increment in petrol prices due to an uptrend in crude oil costs. However, in light of recent fluctuations in global petroleum markets, Dangote Refinery deemed it necessary to align its pricing structure accordingly.
“The latest revision underscores our unwavering commitment to market transparency and fairness, ensuring that cost variations in global crude prices are reflected in domestic petroleum pricing,” Chiejina added.
The refinery expressed confidence that the reduction in ex-depot pricing will contribute positively to the overall cost of living in Nigeria.
“This downward adjustment from ₦950 to ₦890 per litre is expected to yield a tangible reduction in petrol costs nationwide. Consequently, we anticipate a cascading effect that will lower the prices of goods and services while alleviating inflationary pressures across multiple sectors of the economy,” he stated.
Dangote Petroleum Refinery also urged petroleum marketers to work in synergy with the company to ensure that these benefits trickle down to consumers, reinforcing broader economic recovery initiatives championed by President Bola Ahmed Tinubu’s administration.
“This collective approach aligns with the overarching objective of making Nigeria self-reliant in refined petroleum products while positioning the nation as a dominant player in the global oil export market,” Chiejina emphasized.
The 650,000-barrel-per-day Dangote Refinery, a monumental project spearheaded by Nigerian business magnate Aliko Dangote, commenced diesel and aviation fuel production in January last year. Originally slated to be operational in 2021, the refinery faced multiple delays before its official inauguration by former President Muhammadu Buhari in 2023.
Since assuming office in May 2023, President Bola Tinubu has undertaken bold economic reforms, including the removal of long-standing fuel subsidies and the deregulation of the naira currency, aiming to stimulate foreign investment and drive sustainable economic growth. However, in the immediate term, these reforms have led to a threefold increase in fuel prices, soaring inflation—reaching a 34% high in June 2024—and a significant depreciation of the naira against the U.S. dollar, exacerbating the cost of imported goods.
With the latest price adjustment, stakeholders and consumers alike will be watching closely to assess the tangible economic impact and whether this downward trend in petrol costs will bring much-needed relief to Nigerian households and businesses.
