Refinery Lowers Petrol Gantry Price
The Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, from N1,275 to N1,250 per litre.
The latest adjustment represents a two per cent reduction and comes as competition continues to increase in Nigeria’s deregulated downstream petroleum sector.
Furthermore, market checks confirmed the price cut, which followed a sustained decline in global crude oil prices.
Crude Oil Decline Drives Price Adjustment
A refinery official confirmed the development and linked the decision to falling international crude oil prices.
According to the official, crude oil remains the refinery’s primary feedstock. As a result, lower global prices have created room for adjustments in local fuel pricing.
“It is true that we have adjusted the gantry price of petrol due to the reduction in crude oil prices, which is our major feedstock. In a deregulated market, such adjustments should be expected,” the official said.
In addition, the refinery stated that it would continue to monitor market trends and review prices when necessary.
“We are still monitoring developments and will continue to adjust prices in line with market realities,” the source added.
Filling Stations Yet to Reflect New Price
Despite the reduction, many filling stations across the country have yet to implement the new pricing structure.
Meanwhile, petrol continues to sell above N1,350 per litre in several locations, depending on the marketer and region.
Industry observers expect pump prices to gradually adjust as marketers begin to receive products at the revised rate.
Refinery Highlights Economic Impact
The refinery recently described itself as a major contributor to Nigeria’s improving economic outlook.
This followed the recent upgrade of Nigeria’s sovereign credit rating by S&P Global Ratings.
The ratings agency upgraded Nigeria’s long-term foreign and local currency sovereign credit ratings to “B” from “B-”.
S&P Cites Refining Capacity Growth
According to S&P, stronger economic growth, improved external balances, rising oil production and increased domestic refining capacity influenced the upgrade.
Moreover, the agency highlighted the operational expansion of the 650,000-barrels-per-day Dangote Petroleum Refinery as a key factor supporting Nigeria’s economic recovery.
The refinery noted that the ratings agency specifically referenced its contribution to the country’s balance of payments and overall economic resilience.
“Significant refining capacity is now also online; Dangote Industries Ltd.’s large-scale refinery and petrochemical complex has ramped up to near its maximum capacity of 650,000 barrels per day,” the company stated.
Market Competition Expected to Intensify
As crude oil prices remain under pressure globally, analysts expect further competition among fuel suppliers in Nigeria.
Consequently, consumers could benefit from additional price adjustments if market conditions continue to favour lower production costs.
Industry stakeholders also believe increased domestic refining capacity may help stabilise fuel supply and reduce dependence on imported petroleum products.
