KEY POINTS
- Dangote Refinery cut petrol’s ex-depot price by N50 to N1,165 per litre.
- Diesel price was reduced by N80, from N1,650 to N1,570 per litre.
- The refinery said the cuts are aimed at improving energy affordability
The Dangote Petroleum Refinery has announced fresh reductions in the ex-depot prices of Premium Motor Spirit (PMS), popularly known as petrol, and Automotive Gas Oil (diesel), in a move aimed at improving access to refined petroleum products and easing energy costs for consumers and businesses.
The refinery reduced the ex-depot price of petrol by N50 per litre, bringing it down from N1,215 to N1,165. Diesel also received a price cut of N80 per litre, dropping from N1,650 to N1,570.
The latest reduction was announced by the Dangote Group on Wednesday and represents another adjustment in the refinery’s pricing structure amid continuing developments in Nigeria’s downstream petroleum market.
Under the new pricing arrangement, the ex-depot price of petrol has been reduced from N1,215 to N1,165 per litre.
The N50 reduction could provide some relief to marketers and businesses purchasing products directly from the refinery, although the extent to which the reduction will translate into lower pump prices will depend on transportation costs, distribution expenses, retail margins and other market factors.
The Dangote Group said the price adjustment was part of the refinery’s efforts to make petroleum products more affordable and improve access to locally refined fuel.
Diesel price reduced by N80
The refinery also announced a larger reduction in the price of diesel, cutting the ex-depot price from N1,650 to N1,570 per litre.
The N80 reduction could be significant for businesses and industries that rely heavily on diesel to power generators, machinery, logistics operations and other commercial activities.
With electricity supply challenges continuing to affect many businesses across Nigeria, changes in diesel prices can have a wider impact on operating costs, particularly for manufacturers, transport operators, small businesses and other enterprises that depend on diesel-powered equipment.
According to the Dangote Group, the latest price review reflects the refinery’s efforts to improve energy affordability, strengthen access to refined petroleum products and support economic activities across the country.
The company said the refinery would continue to pass on the benefits of improved operational efficiencies to consumers whenever market conditions allow.
Dangote also reaffirmed its commitment to supplying what it described as affordable and high-quality petroleum products to the Nigerian market.
The company said, “The price review reflects Dangote Refinery’s ongoing efforts to enhance energy affordability, improve access to refined petroleum products, and support economic activities across Nigeria.”
The latest price reduction also comes against the backdrop of Nigeria’s efforts to reduce its dependence on imported refined petroleum products.
The Dangote Refinery has increasingly become a major source of locally refined petrol and diesel, with its operations expected to contribute to the development of Nigeria’s downstream petroleum sector.
The company said its operations were helping to strengthen the country’s energy security by increasing domestic refining capacity and reducing reliance on imports.
The refinery added that it would continue to leverage operational efficiencies to maintain stable supplies and deliver value to consumers, businesses and other stakeholders.
Although the announced prices are ex-depot rates and do not automatically determine the final retail prices at filling stations, the reductions could create room for lower pump prices if marketers pass the savings down the distribution chain.
For motorists, any reduction in petrol prices could help reduce transportation costs and provide some relief to households already dealing with high living expenses.
Businesses could also benefit, particularly those whose operations are heavily dependent on petrol and diesel. Lower fuel costs can reduce expenses associated with transportation, power generation, production and distribution.
However, the eventual impact on consumers will depend on how quickly and extensively the new ex-depot prices are reflected in the wider downstream market.
