The latest reduction in the ex-depot price of Premium Motor Spirit by Dangote Petroleum Refinery is raising expectations of modest cost relief across Nigeria’s fuel-dependent economy, particularly for transporters, manufacturers and households already strained by high living costs.
The refinery on Tuesday lowered its gantry price of petrol by N25 per litre, bringing it down from N799 to N774 per litre, a move authorities and market watchers say could influence downstream pricing if fully passed on by marketers nationwide.
In a notice circulated to petroleum marketers, the Dangote Petroleum Refinery confirmed that the new price takes immediate effect, outlining the adjustment through its Group Commercial Operations Department and formally notifying buyers of the revised rate.
Alongside the price cut, the company also ended its petrol lifting incentive scheme, explaining that the bonus, which supported bulk offtake by marketers, expired at midnight on February 10, 2026, with outstanding credits for earlier volumes to be reflected in account statements.
The pricing decision comes against the backdrop of Nigeria’s fully deregulated downstream petroleum market, where fuel prices have remained sensitive to foreign exchange movements, crude oil prices and supply dynamics since the removal of fuel subsidy in 2025.
Over the past year, these pressures translated into wide swings in ex-depot and pump prices, pushing transport fares higher and increasing operating costs for small businesses, while consumers absorbed the knock-on effects in food and service prices.
Industry observers say the growing contribution of domestic refining, led by Dangote’s large-scale facility, has begun to soften these shocks, especially in southern supply corridors, reducing dependence on imported fuel and the volatility tied to import-parity pricing.
With a processing capacity of 650,000 barrels per day, the Dangote Petroleum Refinery remains a key player in Nigeria’s energy supply chain, and analysts note that sustained price stability from local production could play a critical role in easing inflationary pressures and supporting broader economic recovery.
