Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS) by N25 per litre, lowering the gantry price from N799 to N774 per litre, a move expected to ease cost pressures across the downstream petroleum market and potentially moderate pump prices in the coming days.
The refinery communicated the price reduction to petroleum marketers yesterday, stating that the new rate takes immediate effect.
In a notice issued by its Group Commercial Operations Department, Dangote Petroleum Refinery and Petrochemicals FZE said: “This is to notify you of a change in our PMS gantry price from N799 per litre to N774 per litre.”
The company also announced the end of its PMS lifting incentive, noting that the bonus expired at midnight on February 10, 2026.
Credits for volumes lifted between February 2 and February 10, within previously communicated thresholds, are to be reflected in marketers’ account statements.
Industry analysts say the price cut could translate into lower pump prices, particularly for major marketers and independent retailers sourcing directly from the refinery, depending on logistics costs, distribution margins, and regional freight differentials.
With transport, storage, and retail margins typically adding between N60 and N90 per litre, the revised ex-depot price could see pump prices adjust downward where current retail prices are above cost-reflective levels, especially in Lagos and other coastal supply corridors.
However, analysts caution that the extent of any price reduction at the pump will depend on marketers’ inventory levels, exchange rate movements, and the cost of bridging products to inland markets.
The combination of a lower ex-depot price and the withdrawal of volume-based incentives is viewed as a shift by the Dangote Refinery toward a more stable pricing framework as it consolidates its role as a dominant supplier in Nigeria’s deregulated fuel market.
