In a move that’s likely to spark renewed competition in Nigeria’s downstream sector, Dangote Refinery has once again slashed the ex-depot price of Premium Motor Spirit (PMS) to ₦835 per litre. This latest pricing update, effective Wednesday, 16 April 2025, comes amid volatile global oil prices, foreign exchange pressures, and ongoing adjustments across the petroleum value chain.
The refinery’s decision to peg PMS at ₦835 per litre (inclusive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) charges) signals an aggressive pricing strategy aimed at asserting dominance in the deregulated market especially as independent marketers and NNPCL adjust to fluctuating supply conditions.
New Price Structure – 16 April 2025
- PMS (Petrol) Gantry: ₦835 per litre – inclusive of statutory levies
- PMS Coastal Sales: On hold
- AGO (Diesel) Gantry: $608.00 + $70 surcharge – payable in naira (₦1,650/$) or USD
- AGO Coastal: On hold
- ATK (Jet Fuel) Gantry: $664.75 + $42
- ATK Coastal: $664.75 + $22
- LPG (Cooking Gas): Gantry and coastal prices on hold
Strategic Implications of the ₦835 Petrol Price
This price slash marks Dangote’s third downward adjustment in under six weeks. In March 2025, the refinery shocked the market by reducing petrol prices to ₦865/litre, triggering a short-lived price war with NNPCL, which responded by lowering its depot rate to ₦860/litre. The latest drop to ₦835 is seen as both a strategic offensive and a market correction, factoring in a drop in global crude prices and refined product benchmarks.
Brent crude has dipped to as low as $61.77 per barrel, down significantly from over $84 in mid-2024. This drop, driven by OPEC+ overproduction and geopolitical shifts including U.S. tariff policies has slashed the dollar-denominated cost of refined petroleum products globally. The move allows Dangote to recalibrate its pricing based on reduced feedstock costs and pass on savings to the domestic market.
A balancing act amid forex constraints
While the petrol price has dropped, the Naira’s continued slide against the U.S. dollar presents a conflicting dynamic. At a prevailing exchange rate of ₦1,650/$, marketers sourcing diesel (AGO) and jet fuel (ATK) in dollars are still grappling with high conversion costs. With diesel gantry prices at over ₦1,120/litre, logistics operators and manufacturers remain under pressure.
Dangote’s PMS pricing, however, provides some relief to urban and peri-urban markets, particularly where competitive pressures keep pump prices aligned with depot trends. In contrast, northern regions continue to report petrol retailing at ₦980–₦1,000/litre due to added transport costs and supply disruptions.
Coastal supply delays raise concern
The “on hold” status for coastal sales of PMS, AGO, and LPG suggests operational delays or inventory management decisions by the refinery or marketers. These sales channels typically support offshore discharges and bulk buyers, and any suspension can indicate supply chain bottlenecks—especially amid rising vessel turnaround times and port congestion.
Industry insiders say the naira-for-crude arrangement, while beneficial, has yet to fully stabilise due to inconsistent crude allocations from NNPCL and unresolved logistics issues within Nigeria’s coastal petroleum trade routes.
Impact on retailers and final consumers
Retailers have welcomed the new pricing but remain cautious about sustainability. The Independent Petroleum Marketers Association of Nigeria (IPMAN) and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have called for steady supply and improved forex access to ensure price reductions are felt at the pump.
For now, pump prices in Lagos and parts of the South-West hover between ₦890 and ₦920 per litre, depending on proximity to depots and loading times. In contrast, prices in states like Borno, Yobe, and Katsina remain as high as ₦1,000/litre.
Jet fuel and diesel pricing remains dollar-pegged
While PMS pricing has seen a shift, jet fuel (ATK) and diesel (AGO) remain priced in dollars. ATK is currently sold at $664.75 + $42 for gantry delivery and $664.75 + $22 at coastal terminals, placing a burden on airlines and logistics firms already navigating tight margins. Diesel, the backbone of Nigeria’s commercial transport and manufacturing sector, remains priced at $608.00 + $70, pushing retail prices above ₦1,100/litre nationwide.
Dangote Refinery’s decision to reduce petrol ex-depot price to ₦835 per litre offers short-term hope for cost stability in Nigeria’s fragile fuel market. However, this pricing reprieve can only translate to meaningful consumer benefit if supported by a stable forex regime, improved supply consistency, and regulatory coordination.
As the market awaits further movements from NNPCL and independent marketers, all eyes remain on Dangote Refinery’s evolving role in shaping Nigeria’s energy future where local refining must meet rising demand without exposing the economy to external shocks.
