- Dangote Refinery Cuts Petrol Price To N1,250 Per Litre
- Price cut follows decline in global crude oil prices.
- Many filling stations are yet to reflect the new pricing.
The Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit (PMS), also known as petrol, to N1,250 per litre from N1,275 per litre, marking a two per cent reduction.
The development comes as competition continues to intensify in Nigeria’s deregulated downstream petroleum sector, with global crude oil prices recording a downward trend in the international market.
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EKO HOT BLOG reports that an official of the refinery confirmed the price adjustment, attributing the decision to the sustained fall in crude oil prices, which remains the primary feedstock for petrol production.
“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.
The official added that the refinery will continue to monitor market movements and adjust prices in line with prevailing economic realities.
“We are still monitoring developments and will continue to adjust prices in line with market realities,” he stated.
Despite the reduction at the gantry level, market checks show that many filling stations across the country are yet to reflect the new pricing. Petrol is still being sold above N1,350 per litre in several locations, depending on marketers and distribution costs.
Meanwhile, the refinery has maintained that it is playing a key role in improving Nigeria’s economic outlook following the recent sovereign credit rating upgrade by S&P Global Ratings.
S&P had 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.
The Dangote Refinery noted that the rating upgrade reflects growing confidence in Nigeria’s macroeconomic direction, particularly the impact of increased local refining capacity on foreign exchange stability and import reduction.
It further stated that its 650,000 barrels-per-day Dangote Petroleum Refinery and Petrochemicals complex has ramped up production close to full capacity, a development the company said has contributed significantly to Nigeria’s improving balance of payments position.
“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 said.
