By Joy Yesufu
The Dangote Petroleum Refinery has reduced the ex-depot prices of Premium Motor Spirit (PMS), popularly known as petrol, and Automotive Gas Oil (AGO), also known as diesel, in a move expected to trigger another round of reductions in retail fuel prices across the country.
The 700,000 barrels-per-day refinery on Wednesday announced a N50 per litre reduction in the gantry price of petrol, bringing it down from N1,215 to N1,165 per litre.
Similarly, the refinery cut the ex-depot price of diesel by N80 per litre, lowering it from N1,650 to N1,570 per litre.
The latest review is expected to ease costs for fuel marketers purchasing products directly from the refinery and could translate into lower pump prices for consumers if the reductions are passed on across the distribution chain.
Industry analysts say the price adjustment reflects the growing influence of the Dangote Refinery on Nigeria’s downstream petroleum market, where increased local refining capacity is beginning to shape pricing dynamics.
The development comes amid expectations of further reductions in petroleum product prices as global oil prices and import-related costs continue to moderate.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, had recently projected that fuel prices would continue to decline if the landing cost of imported petroleum products remained on a downward trajectory.
The latest reduction also follows recent price adjustments by several marketers, reinforcing expectations of increased competition and more affordable fuel prices for motorists and businesses.
