Petroleum marketers across key Nigerian cities have adjusted their depot prices for Premium Motor Spirit (PMS), reflecting the growing influence of the Dangote Petroleum Refinery in the nation’s downstream sector. Between Friday, 31st January 2025, and Monday, 3rd February 2025, major depots in Lagos, Warri, and Calabar implemented significant reductions, following Dangote’s aggressive pricing strategy.
Depot Price Adjustments
Lagos
- Nipco: ₦952 → ₦935
- Dangote: ₦940 → ₦916
- Chipet: ₦945 → ₦935
- Aiteo: ₦942 → ₦925
Warri
- Matrix Warri: ₦970 → ₦960
- A.Y.M Shafa: ₦970 → ₦960
Calabar
- Zone4: ₦958 → ₦950
- Alkanes: ₦958 → ₦949
- Northwest: ₦955 → ₦950
The reductions highlight the increasing competition in the petroleum market, with Dangote Refinery driving price adjustments across the sector.
Dangote’s Market Disruption
Dangote Refinery, which recently commenced operations, has emerged as a game-changer. By setting its ex-depot price lower than competitors, the refinery is forcing other marketers to follow suit. Market observers believe this move is part of a broader strategy to establish Dangote as the dominant supplier of locally refined petroleum products, reducing reliance on imported fuel.
The refinery’s price cut from ₦940 to ₦916 per litre in Lagos makes it one of the most affordable suppliers. Industry insiders suggest that Dangote’s continued pricing adjustments could push other depots to lower their rates further in the coming weeks.
Implications for the Market
The reduction in ex-depot prices could eventually translate to lower pump prices for consumers, although the timeline for this impact remains uncertain. Retail outlets may take longer to adjust due to existing stock purchased at higher prices. However, analysts predict that if Dangote maintains its downward price trend, competition will drive further reductions nationwide.
Despite initial concerns about the refinery’s ability to meet domestic demand, its growing influence in price setting suggests that Nigeria may soon experience improved market stability. With increased production, fuel availability is expected to rise, potentially easing the pressure on consumers facing high transportation and energy costs.
What’s Next?
As Dangote Refinery continues to shape the market, stakeholders will closely monitor its impact on fuel pricing and distribution. If the current trend persists, the Nigerian downstream sector could witness further price reductions, benefiting both marketers and consumers.
For now, the industry remains in flux, with Dangote Refinery establishing itself as a price leader in Nigeria’s fuel market.
