The Dangote Petroleum Refinery has once again effected a price reduction at its loading gantry, reducing the loading cost of its petrol from ₦825 per litre to ₦815 per litre.
The development, which came into effect on Thursday, marks a new point in the price war currently ongoing in Nigeria’s downstream oil sector.
The price reduction comes about two weeks after the company announced a ₦65 reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol.
The reduction in the ex-depot price from ₦890 to ₦825 per litre took effect on 27th February 2025.
The new pricing structure, which kicked off on Thursday, reportedly met with enthusiasm from oil marketers, with many of them neglecting other sources and now sourcing their products directly from the refinery.
On Tuesday, reports confirmed that the landing cost of petrol imported into Nigeria dropped to ₦774.72 per litre, with marketers predicting that the continued price plunge may lead to a reduction in the pump prices of PMS to about ₦800 per litre.
“Crude oil is a major component in the production of fuel, so a further reduction in its price would definitely warrant a drop in petrol price, and it is possible to drop to ₦800 per litre,” the National Publicity Secretary of the Independent Marketers Association of Nigeria, Chief Ukadike Chinedu, stated.
With the fresh price reduction by Dangote Refinery of its loading cost to ₦815 per litre on Thursday, the ₦10 levy charged by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, would now make the cost of petrol from the refinery ₦825 per litre.
Speaking on the development, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said Dangote and other stakeholders are fighting for market control, hence the price war noticed by Nigerians.
He said, “Yes, there is speculation that the price of imported products is now lower. That is the reason for the price war. It is the beauty of deregulation. Dangote has millions of litres and would not want any external force to take its market share. So it would have forced the price reduction.”
When contacted, an official of the Dangote Refinery, who asked not to be quoted, claimed not to be aware of the new price change but told Punch to go ahead with what oil marketers said.
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