By Acho Marcus Nkire
In a continued effort to drive down fuel prices and boost local supply, the Dangote Refinery has announced another reduction in its petrol (Premium Motor Spirit, PMS) ex-depot price, now set at ₦835 per litre. The new rate marks a ₦30 drop from ₦865 per litre introduced just six days ago and a ₦45 drop from ₦880 per litre last Wednesday—reflecting a total decrease of 3.5% within a week.
This latest adjustment is the third in less than six weeks, signaling a deliberate effort by the refinery to make refined products more affordable amid evolving market dynamics and regulatory changes.
Price Change Confirmed Through Official Communication
According to a notice issued to customers on Wednesday morning, which PUNCH Online reviewed via a pro forma invoice and price data from petroleumprice.ng, the new pricing takes into account statutory levies imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The updated breakdown shows that PMS at the Dangote gantry is now priced at ₦835 per litre, inclusive of all applicable NMDPRA charges. Meanwhile, coastal sales for petrol remain suspended.
Diesel, Jet Fuel, and Cooking Gas Pricing
For other refined products, the refinery set diesel’s gantry price at $608, with an additional $70 surcharge. Payment options remain flexible—either in U.S. dollars or in naira at a conversion rate of ₦1,650/$.
Jet fuel is now priced at $664.75, with gantry and coastal surcharges of $42 and $22, respectively. Sales of cooking gas, both at the gantry and coastal levels, are still on hold, pending further market developments.
Price Cut Aligns with Lower Import Parity Costs
The latest reduction comes amid a broader decline in import parity costs. On Tuesday, the landing cost of imported petrol dropped to ₦853 per litre, according to industry data, further narrowing the gap between domestic and imported fuel prices.
Spot import parity into local storage tanks, accounting for shipping, import duties, and currency exchange costs, fell by ₦3 from ₦856.75 recorded last Monday. Additionally, data showed on-the-spot sales at the Nigerian Pipelines and Storage Company’s (NPSC) NOJ terminal dipped to ₦853.12, while the 30-day average cost declined to ₦844.84 per litre.
Marketers Ramp Up Import Volume
Between April 8 and 16, marketers secured approval to import 117,000 metric tonnes of petrol—equivalent to 156.9 million litres—via six vessels docked at Tin Can Island Port in Lagos and Calabar Port in Cross River State. This effort is aimed at boosting fuel availability and balancing the national supply.
Naira-for-Crude Policy Resumes
Significantly, the price adjustments coincide with the full reinstatement of the government’s Naira-for-Crude agreement with local refineries. The Ministry of Finance reaffirmed the policy’s long-term vision in a statement released last week, stressing its role in bolstering energy security and reducing Nigeria’s reliance on foreign exchange for petroleum imports.
The update followed a high-level meeting between Finance Minister Wale Edun and representatives from Dangote Refinery. Discussions focused on implementation progress and challenges linked to the crude-for-naira policy.
According to the ministry, the initiative is not a stop-gap solution but a strategic policy intended to promote sustainable local refining and stabilize fuel prices over the long term.
Looking Ahead
With Dangote Refinery’s repeated pricing adjustments and increased import activities by marketers, consumers could see a sustained easing of pump prices in the weeks ahead. As Nigeria navigates energy reforms and supply stabilization, the ongoing collaboration between the government and local refineries may prove crucial in reshaping the country’s downstream petroleum landscape.
*First reported by Damilola Aina of the Punch
