KEY POINTS
- Dangote Refinery reduces petrol gantry price to N1,200 per litre
- Coastal price lowered to N1,153 per litre
- Price cut represents N85 reduction from previous N1,285 rate
Dangote Petroleum Refinery and Petrochemicals has reduced its petrol price, lowering the gantry price to N1,200 per litre and the coastal price to N1,153 per litre. The adjustment marks the first downward review by the refinery after a series of increases recorded earlier in the month.
The company disclosed the development in a statement issued by its spokesperson, Anthony Chijiena. According to the refinery, the new gantry price represents a reduction of N85 per litre from the previous price of N1,285 per litre. The gantry price refers to the rate at which marketers purchase fuel directly from the refinery.
The 650,000 barrels-per-day facility, Africa’s largest refinery, has implemented multiple price adjustments since March, largely reflecting volatility in global crude oil markets and supply uncertainties linked to tensions in the Middle East. The latest reduction signals a shift in pricing direction and may ease pressure on downstream fuel costs.
Adjustment expected to impact fuel distribution chain
Industry observers say the price cut could influence costs across the distribution chain, including depots, marketers and retail filling stations. Lower gantry prices typically translate into reduced landing costs for marketers, which may eventually lead to lower pump prices depending on logistics and operating expenses.
The coastal price of N1,153 per litre applies to fuel supplied through marine channels, particularly to coastal depots and bulk distributors. This pricing structure is designed to account for transportation and delivery considerations for buyers receiving products by sea.
Market participants note that changes in Dangote Refinery pricing often have a significant impact on Nigeria’s fuel market, given the facility’s scale and growing role in domestic supply. The refinery’s production capacity positions it as a major determinant of petrol pricing trends across the country.
The reduction comes after at least five petrol price increases implemented by the refinery earlier in March. Those hikes were linked to rising crude oil prices and global supply disruptions, which pushed up production costs and triggered adjustments in domestic fuel pricing.
With the latest cut, analysts say marketers may review their depot and pump prices in the coming days, although the extent of reductions will depend on inventory levels and distribution expenses. Consumers could see gradual price moderation if the lower refinery price is sustained.
