Dangote crashes ex-depot petrol price to ₦828/litre

By Kazeem Ugbodaga

The Dangote Petroleum Refinery has announced a fresh reduction in the ex-depot (gantry) price of Premium Motor Spirit (PMS), commonly known as petrol, from ₦877 to ₦828 per litre.

The latest cut, representing a 5.6 percent decrease, took effect Friday morning and has already triggered excitement among marketers and consumers nationwide.

This marks another significant step in Dangote’s bid to stabilise fuel supply and drive down pump prices through domestic production.

According to company sources, the price slash was made possible through a new “naira-for-crude” arrangement with the Nigerian National Petroleum Company Limited (NNPCL).

The deal enables Dangote Refinery to access locally produced crude oil in naira rather than dollars, reducing operational costs and shielding the refinery from fluctuations in foreign exchange rates.

Despite global crude oil averaging $64 per barrel, Dangote’s new pricing model allows it to refine at a lower cost, an advantage that now positions it below import parity.

Marketers at the Lagos loading bay confirmed that petrol loading commenced early Friday at the new price, prompting expectations that pump prices could drop in the coming days.

“This is good news for us and for consumers. With local refining now stabilising, we may soon see a litre of petrol selling below ₦900 at the filling stations,” said a fuel distributor who preferred anonymity.

Industry observers predict that the move could ignite a new round of competition, with other marketers, including NNPC Retail, likely to adjust prices to maintain market share.

Economists say Dangote’s decision could have wider economic implications, particularly for transport and food prices, which are heavily influenced by fuel costs.