Dangote refinery petrol price cut lowers gantry price to N1,200, signalling changes in fuel costs across Nigeria’s distribution network

The Dangote Petroleum Refinery & Petrochemicals has announced a reduction in its gantry price of Premium Motor Spirit, popularly known as petrol, bringing the rate down to N1,200 per litre from over N1,270 per litre in a move that reflects shifting dynamics in the global oil market.

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The Dangote refinery petrol price cut was confirmed by the Group’s spokesperson, Anthony Chiejina, who explained that the adjustment forms part of a broader review of the refinery’s pricing template influenced by international market conditions.

He noted that tensions in the Middle East continue to affect crude oil pricing and supply trends worldwide.

According to Chiejina, the refinery has also adjusted its coastal price to N1,153 per litre, a development expected to influence marine deliveries to depots across the southern region of Nigeria.

The revised pricing is anticipated to have a ripple effect across distribution channels, including depots and retail outlets, potentially easing cost pressures in parts of the downstream sector.

The announcement comes at a time when the refinery continues to navigate operational challenges linked to crude oil supply.

The Chief Executive Officer of Dangote Petroleum Refinery, David Bird, had previously disclosed that the facility is designed to receive between 13 and 15 cargoes of crude oil per month, but actual deliveries have fallen short of this benchmark.

Bird described the shortfall as a constraint on optimal operations, noting that the gap between crude purchase prices and prevailing premiums represents a financial loss to international traders rather than the domestic economy.

His remarks highlight ongoing structural issues affecting crude availability for local refining.

In addition, Bird addressed the controversial crude-for-naira policy, clarifying that it is often misunderstood.

He explained that the initiative is intended to strengthen foreign exchange stability and encourage the use of local currency in crude transactions, rather than providing direct commercial advantage to the refinery.

This clarification underscores the policy’s broader economic intent within Nigeria’s energy framework.

Despite these challenges, the refinery maintains that it is operating at full capacity, supplying both domestic markets and regional customers.

The latest Dangote refinery petrol price cut is therefore seen as a significant development with potential implications for fuel affordability and market competition across Nigeria’s downstream petroleum sector.

Analysts suggest that the revised pricing could influence retail pump prices over time, depending on how distribution margins and logistics costs adjust in response to the new template.

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The move adds a new dimension to ongoing discussions around fuel pricing stability, domestic refining capacity, and energy security in Africa’s largest economy.