By Ayomide Otitoju
Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit (PMS) by ₦25 per litre, lowering the ex-depot rate from ₦799 to ₦774 per litre.
The adjustment was conveyed in a notice issued by the refinery’s Group Commercial Operations Department to marketers, stating that the new price takes immediate effect.
“This is to notify you of a change in our PMS gantry price from ₦799 per litre to ₦774 per litre,” the notice read.
The refinery also informed marketers that its PMS lifting incentive programme has ended, noting that the price reduction is expected to enhance the competitiveness of locally refined petroleum products.
Tuesday’s cut marks the latest adjustment in PMS pricing, which industry observers say is largely influenced by fluctuations in the exchange rate and global crude oil prices. In 2024, ex-depot prices ranged between ₦700 and over ₦800 per litre, impacting pump prices nationwide.
The 650,000-barrel-per-day Dangote refinery, Africa’s largest, commenced petrol supply in 2024 after beginning production of diesel and aviation fuel in January of that year.
For years, Nigeria relied heavily on fuel imports, swapping crude oil worth billions of dollars for refined products while subsidising petrol to keep domestic prices low. The subsidy regime and import dependence significantly strained foreign exchange reserves amid declining oil revenues and persistent currency shortages.
Since assuming office in May 2023, President Bola Tinubu has implemented sweeping economic reforms, including the removal of fuel subsidies and the floating of the naira, measures he says are aimed at attracting investment and fostering long-term growth.
However, the reforms have triggered short-term economic pressures, with fuel prices more than doubling and inflation climbing to a three-decade high of 34 per cent in June 2024.
