Dangote Refinery has lowered the gantry price of Premium Motor Spirit by N25 per litre.
As a result, the ex depot price has decreased from N799 to N774 per litre.
The price adjustment was announced in a notice issued to marketers by the Group Commercial Operations Department of Dangote Petroleum Refinery and Petrochemicals FZE, stating that it takes effect immediately.
“This is to notify you of a change in our PMS gantry price from N799 per litre to N774 per litre,” the notice read.
The refinery also informed marketers that its PMS lifting incentive programme has been discontinued.
The price revision is expected to enhance the competitiveness of locally refined petroleum products.
The reduction in the ex depot price announced on Tuesday marks the latest adjustment in the cost of the essential commodity, which analysts say is largely influenced by exchange rate movements and global crude oil prices, among other factors.
In the previous year, the ex depot price fluctuated mostly between N700 and above N800 per litre, impacting the retail pump price of PMS.
The 650,000 barrel per day Dangote refinery, the largest in Africa, commenced petrol distribution in 2024.
In January of that year, the facility established by Nigerian businessman Aliko Dangote began producing diesel and aviation fuel.
Nigeria has historically exchanged crude oil valued at billions of dollars for imported petrol, which was subsidised for years to keep domestic prices low.
Fuel imports and subsidy payments significantly depleted foreign exchange reserves at a time when the country has been facing declining oil revenues and shortages of foreign currency.
Since assuming office in May 2023, President Bola Tinubu has removed longstanding fuel subsidies and allowed the naira to float as part of economic reforms aimed at attracting foreign investment and fostering sustainable growth.
However, in the immediate term, fuel prices have more than doubled, and inflation reached a 30 year high of 34 percent in June 2024.
Discover more from LN247
Subscribe to get the latest posts sent to your email.
