By Ayomide Otitoju
Nigeria’s downstream oil sector may be poised for relief following a price reduction by Dangote Petroleum Refinery & Petrochemicals, which has lowered its ex-depot price of Premium Motor Spirit (PMS) to N1,200 per litre, defying the upward trajectory of global crude oil prices driven by escalating tensions in the Middle East.
In a development expected to influence domestic fuel pricing, the refinery also set its coastal price at N1,153 per litre, signaling a potential shift in supply cost dynamics across the country.
The adjustment comes at a time when international oil markets are under pressure from geopolitical instability in the Middle East, which has disrupted supply chains, raised freight costs, and increased insurance premiums for crude shipments worldwide.
Industry analysts say the refinery’s decision runs counter to prevailing global trends, where rising crude prices typically force refiners to increase product prices in response to higher input costs.
Market observers note that the reduction in ex-depot pricing could have a ripple effect across Nigeria’s downstream sector, as petroleum marketers may benefit from lower procurement costs—an outcome that could translate into reduced pump prices for consumers if sustained.
Experts further highlight that Nigeria’s expanding domestic refining capacity is beginning to play a stabilising role in the energy market. Operations at Dangote Petroleum Refinery & Petrochemicals—widely regarded as Africa’s largest single-train refinery—are increasingly seen as a buffer against external shocks amid ongoing global uncertainties.
While the full impact of the price cut will depend on distribution efficiency, logistics, and competitive market forces, stakeholders remain cautiously optimistic that the move could offer short-term relief to consumers facing elevated fuel costs.
The pricing decision reinforces the refinery’s strategic influence in shaping fuel supply and pricing trends within Nigeria’s evolving oil and gas landscape.
