The Dangote Petroleum Refinery has announced a reduction in the price of Premium Motor Spirit (PMS) from N990 to N970 per litre. The move, described as a gesture of appreciation to Nigerians, was confirmed in a statement on Sunday by Anthony Chiejina, Group Chief Branding and Communications Officer of the Dangote Group.
“As the year comes to an end, this reduction is our way of thanking Nigerians for their unwavering support in making the refinery a success. It also recognizes the government’s role in fostering an enabling environment for domestic enterprise,” the statement read.
Chiejina assured Nigerians of the refinery’s commitment to maintaining high-quality, environmentally friendly products while ramping up production to meet local demand.
The announcement comes as the deregulation of the downstream oil sector introduces competition, with independent and major marketers reporting gradual declines in pump prices across Nigeria. Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), attributed the price drop to direct sourcing agreements with Dangote, which bypass middlemen and reduce costs.
“IPMAN’s collaboration with Dangote has already led to price reductions of N10 to N15 per litre. As we continue this partnership, we expect further declines,” Ukadike said.
The Major Oil Marketers Association of Nigeria (MOMAN) also confirmed price reductions due to competition, while cautioning that prices may fluctuate based on market dynamics.
Meanwhile, industry stakeholders, including PETROAN (Petroleum Products Retail Outlets Owners Association of Nigeria), recently reached a resolution to prioritize lifting products from Dangote Refinery. According to PETROAN, the refinery has committed to supplying an average of 28 million litres of petrol daily to the local market over the next six months.
This development follows earlier tensions between Aliko Dangote and petroleum marketers, who had criticized the refinery’s pricing. The resolution aims to stabilize fuel supply, reduce price volatility, and promote collaboration among key players in the downstream sector.
However, the Nigerian National Petroleum Company Limited (NNPC) and Dangote Group have denied knowledge of the 28 million litre-per-day agreement, raising questions about the specifics of the reported resolutions. Despite this, PETROAN maintains that the agreement is genuine and reflects ongoing efforts to boost domestic fuel production.
With the refinery’s capacity and market influence, experts predict increased competition and potential relief for consumers as Nigeria navigates the impacts of deregulation in its oil sector.
