Dangote Petroleum Refinery has reduced its ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, from N1,275 to N1,250 per litre, citing declining global crude oil prices and market realities in Nigeria’s deregulated downstream petroleum sector.
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The N25 per litre reduction, representing a two per cent decrease, comes amid growing competition among fuel suppliers and sustained declines in international crude oil prices, the major feedstock for refining petroleum products.
An official of the refinery confirmed the adjustment, explaining that the decision was driven by changes in global oil market dynamics.
“It is true that we have adjusted the gantry price of petrol due to the reduction in crude oil prices, which is our major feedstock. In a deregulated market, such adjustments should be expected,” the official said.
The source added that the refinery would continue to monitor developments in the global oil market and adjust prices accordingly.
“We are still monitoring developments and will continue to adjust prices in line with market realities,” the official stated.
Despite the reduction at the refinery gate, checks indicate that many filling stations across the country have yet to reflect the new pricing, with pump prices still exceeding N1,350 per litre in several locations depending on the marketer and distribution costs.
Dangote Refinery said its operations have become a major contributor to Nigeria’s improving economic outlook, following the recent upgrade of the country’s sovereign credit rating by S&P Global Ratings.
According to the company, S&P raised Nigeria’s lçong-term foreign and local currency sovereign credit ratings from “B-” to “B”, citing stronger economic growth, improved external balances, increased crude oil production and expanded domestic refining capacity.
The refinery noted that the global ratings agency specifically highlighted the operational expansion of the 650,000 barrels-per-day Dangote Petroleum Refinery and Petrochemicals as a significant factor supporting Nigeria’s balance of payments and economic resilience.
“Significant refining capacity is now also online; Dangote Industries Ltd.’s large-scale refinery and petrochemical complex has ramped up to near its maximum capacity of 650,000 barrels per day,” the company stated.
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