Dangote Refinery Cuts Petrol Price by ₦100 to ₦1,075 per Litre as Global Oil Prices Dip

Dangote Petroleum Refinery has reduced its ex-gantry price of Premium Motor Spirit (PMS) by ₦100 to ₦1,075 per litre, marking the first downward adjustment after three consecutive increases that had driven the cost significantly higher in recent weeks.

The refinery’s Chief Communications Officer, Anthony Chiejina, confirmed the new pricing to the Press on Tuesday, stating that PMS supplied through coastal distribution will now sell at ₦1,050 per litre. Diesel (Automotive Gas Oil) has also been reduced by ₦190 to ₦1,430 per litre from the previous ₦1,620.

In a statement, the refinery explained that the price cut reflects the recent decline in global crude oil prices. “As responsible corporate citizens operating in a high-governance code and ethical environment, we believe it is imperative to reduce the price of our products as a reflection of the decline in global crude oil prices,” it said.

The refinery reiterated that all its crude is sourced on international benchmarks plus a premium of $3 to $6 per barrel, with forex paid at the prevailing market rate and no subsidies applied. “For the avoidance of doubt, the crude supplied under the Naira-for-Crude arrangement is priced according to the global benchmark price plus a premium which is then converted to naira using the prevailing market exchange rate,” the statement added.

Market Context and Volatility

The reduction follows a period of sharp increases: petrol rose from ₦874 per litre on March 2 to ₦995 on March 7 and ₦1,175 on March 9. The refinery’s CEO, David Bird, stated on March 9 that Dangote is fully exposed to global oil price movements as it procures crude on international benchmarks.

The latest cut coincides with a drop in crude oil prices to around $90 per barrel on Tuesday — the first decline since the US-Israel-Iran conflict began in late February. The war has driven volatility in global energy markets, with Brent futures briefly exceeding $120 before retreating.

Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) President Billy Gillis-Harry told Channels Television’s The Morning Brief that continued price rises could push PMS toward ₦1,500 per litre. However, he described the availability of product from Dangote Refinery — despite higher prices — as a “salvation” compared to scarcity.

“The reality is that if you look at the volatility in the price from what we are seeing today, the Dangote Refinery is the salvation for us due to the consistent source of product, which is much more important at this time than anything,” Gillis-Harry said.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has attributed recent price fluctuations to market dynamics in Nigeria’s fully deregulated downstream sector. Spokesperson George Ene-Ita said pump price changes reflect supply and demand rather than government regulation.

The Dangote Refinery’s price adjustment is seen as a positive signal for consumers amid ongoing global uncertainty. The facility continues to supply PMS and diesel to the domestic market, supporting Nigeria’s energy security and reducing reliance on imported refined products.