Dangote Petroleum Refinery lowers petrol prices by 3% despite global oil squeeze

Just two weeks after raising petrol prices, the Dangote Petroleum Refinery has reversed course, cutting its ex-depot price by N25 ($0.018) per liter, or more than 3 percent, in a move likely to draw attention from motorists and fuel marketers across Nigeria.

The refinery lowered its Premium Motor Spirit (PMS) gantry price from N799 ($0.59) per liter to N774 ($0.57) per liter, according to a notice sent to marketers on Tuesday, Feb. 10. The adjustment takes immediate effect nationwide. “This is to notify you of a change in our PMS gantry price from N799 ($0.59) per liter to N774 ($0.57) per liter,” the company said.

Dangote prices fuel below imports

The new price places Dangote’s product below the current landing cost of imported petrol from Lomé, which stands at N793 ($0.58) per liter. By pricing at N774 ($0.57), the refinery is positioning locally refined fuel as the cheaper option, a key argument it has made since commencing large-scale operations.

The reduction follows a more than 14 percent increase announced earlier, when the gantry price was lifted in response to rising crude oil costs. At the time, the company said it had “modestly realigned” PMS prices to reflect global energy conditions while seeking to maintain steady supply in the domestic market.

Brent crude above $69 on supply risks

Global oil prices have remained firm. Brent crude has traded above $69 per barrel after severe storms in the United States forced producers to shut in as much as 2 million barrels per day, roughly 15 percent of national output. Exports from the U.S. Gulf Coast were temporarily halted, tightening supply.

Tensions in the Middle East have also kept traders on edge. Strained relations between Washington and Tehran, alongside uncertainty over talks linked to Iran’s nuclear program and the war in Ukraine, have added to price volatility. Against that backdrop, Dangote’s latest cut trims the year-to-date increase in its petrol price to about 10 percent.

Africa’s largest refinery meets domestic demand

The 650,000-barrels-per-day refinery, located in the Lekki Free Zone in Lagos, is Africa’s largest and the world’s biggest single-train facility. It is supported by 1,100 kilometers of pipeline infrastructure designed to handle 3 billion standard cubic feet of gas per day. A 435-megawatt power plant supplies the refinery’s operations.

Since ramping up production, the company has said it can meet Nigeria’s domestic demand for refined products, with volumes available for export. For consumers and marketers watching pump prices closely, the latest adjustment signals how quickly local pricing can respond to shifts in the global oil market.