The Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit, also known as petrol, from ₦1,275 to ₦1,250 per litre.
The adjustment represents a two per cent reduction and comes amid intensified competition in Nigeria’s deregulated downstream petroleum market and declining crude oil prices in the international market.
Market checks confirmed the new price, while an official of the refinery attributed the reduction to the sustained drop in global crude oil prices, which remain the refinery’s major feedstock.
“It is true that we have adjusted the gantry price of petrol due to the reduction in crude oil prices, which is our major feedstock. In a deregulated market, such adjustments should be expected,” the official said.
He added that the refinery would continue to monitor developments in the market and adjust prices in line with prevailing realities.
“We are still monitoring developments and will continue to adjust prices in line with market realities,” he added.
However, findings showed that many filling stations across the country have yet to reflect the new price, with petrol still selling above ₦1,350 per litre in some locations, depending on the marketer and area.
The latest price cut comes as the Dangote Refinery continues to play a major role in Nigeria’s fuel supply and downstream market competition.
The refinery recently stated that it has become a major driver of Nigeria’s improving economic outlook following the country’s sovereign credit rating upgrade by S&P Global Ratings.
According to the company, S&P upgraded Nigeria’s long-term foreign and local currency sovereign credit ratings to “B” from “B-”, citing stronger economic growth, improved external balances, rising oil production and increased domestic refining capacity as key factors supporting the country’s economic recovery.
The refinery noted that the global ratings agency specifically identified the operational ramp-up of the 650,000 barrels-per-day Dangote Petroleum Refinery and Petrochemicals as a significant contributor to Nigeria’s improving balance of payments position and wider economic resilience.
“Significant refining capacity is now also online; Dangote Industries Ltd.’s large-scale refinery and petrochemical complex has ramped up to near its maximum capacity of 650,000 barrels per day,” the company stated.
