The Dangote Petroleum Refinery has reduced its ex-gantry price of Premium Motor Spirit, popularly known as petrol, from ₦1,125 per litre to ₦1,075 per litre.
The latest adjustment represents a ₦50 or 4.4 per cent reduction from the previous price and is expected to further intensify competition in Nigeria’s downstream petroleum sector.
The new gantry price reduction of ₦50 per litre, marks the second price cut within just seven days from ₦1,175 to ₦1,125 per litre.
Findings on Thursday showed that the refinery also aligned its coastal loading price at ₦1,075 per litre, effectively removing the earlier price differential between coastal and gantry sales.
A senior official of the Dangote Petroleum Refinery, who pleaded anonymity because he was not authorised to speak publicly, said the new pricing regime took effect immediately.
“The refinery has reduced the ex-gantry price of PMS from N1,125 per litre to N1,075 per litre. The coastal loading price has also been adjusted to N1,075 per litre. This is part of the refinery’s efforts to make products more accessible and competitive in the market,” the official said.
The official further disclosed that the refinery had suspended its 20-member consortium arrangement, opening product loading to all qualified marketers.
“The consortium arrangement has been cancelled. Loading at both the gantry and coastal terminals is now open to all marketers that meet the necessary requirements. The objective is to deepen market access and ensure seamless distribution of products across the country,” the source added.
Checks on petroleumprice.ng also confirmed the new ex-depot price of ₦1,075 per litre at the Dangote refinery.
The latest reduction could compel filling stations to adjust their pump prices downward in the coming days, especially those sourcing products directly from the refinery.
The development comes amid increasing competition in the downstream sector and renewed efforts by the Federal Government to ensure that Nigerians benefit from the deregulation of the petroleum market.
Earlier this week, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, insisted that fuel prices in a deregulated market would be determined by market forces and competition rather than government directives.
The minister had maintained that the era of government-fixed fuel prices was over, stressing that increased domestic refining capacity would naturally lead to more competitive pricing and improved energy security.
Similarly, the Nigerian Midstream and Downstream Petroleum Regulatory Authority has repeatedly stated that petrol prices must remain cost-reflective under the deregulation regime.
The authority recently warned against profiteering and arbitrary pricing practices in the downstream market, insisting that operators must adhere to the principles of fair competition and transparency.
Also, the Federal Competition and Consumer Protection Commission has consistently advocated competitive market practices, saying consumers should benefit from price reductions arising from improved supply conditions and increased competition.
The latest price cut by Dangote adds to a series of ₦50 reductions implemented by the refinery since it commenced large-scale petrol supply to the domestic market.
The PUNCH