Several filling stations across Nigeria have begun reducing the pump price of petrol following a fresh price cut by the Dangote Petroleum Refinery. The development has triggered adjustments in retail fuel prices nationwide, offering modest relief to motorists and businesses grappling with rising energy costs.
The refinery recently reduced its ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, by about ₦100, bringing the price down from approximately ₦1,175 to about ₦1,075 per litre. The price for coastal supply was also set slightly lower at around ₦1,050 per litre to account for distribution differences.
Industry observers say the move immediately influenced fuel marketers and filling stations, many of which rely on the refinery as a major supply source.
Following the adjustment, the Nigerian National Petroleum Company Limited (NNPC) and other independent marketers announced new retail prices at several of their outlets. Some NNPC stations in Lagos reportedly reduced pump prices to around ₦1,130 per litre, while outlets in Abuja adjusted their prices to about ₦1,161 per litre, down from earlier rates that were above ₦1,200.
Other marketers also followed suit. Stations operated by companies such as NIPCO and Ardova adjusted prices to between ₦1,195 and ₦1,200 per litre in parts of Abuja, reflecting the drop in wholesale costs.
Energy analysts note that the Dangote refinery’s pricing decisions have increasingly become a major influence on Nigeria’s downstream petroleum market. With the refinery now supplying a large share of the country’s petrol demand, changes in its ex-depot price often trigger immediate adjustments at retail stations.
The price reduction comes amid broader reforms in Nigeria’s petroleum sector aimed at boosting domestic refining and reducing dependence on imported fuel. Authorities recently prioritized locally refined petrol under the Petroleum Industry Act, limiting import licenses when domestic supply is sufficient.
According to Vanguard News, despite the recent price cut, petrol prices remain relatively high compared with previous years. In many locations, consumers still pay around ₦1,200 to ₦1,300 per litre due to transportation costs, taxes, and marketers’ margins.
Energy experts say further reductions could occur if global crude oil prices stabilize and domestic refining capacity increases. However, they caution that the fuel market remains volatile due to international oil price fluctuations and supply chain challenges.
For many Nigerians, the recent price drop,
though modest, has been welcomed as a sign that increased local refining
capacity may gradually ease the country’s long-standing fuel supply challenges.
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