In a move expected to ease fuel costs
across Nigeria, the Dangote Refinery has resumed sales of Premium Motor Spirit
(PMS) in naira, twenty-two days after suspending such transactions.
The refinery also announced a downward review of its
ex-depot price, cutting it to N865 per litre, a N15 drop from the N880
previously charged on Wednesday.
The development was confirmed via a notice issued by
the refinery to its marketers and partners on Thursday morning. A Pro forma
invoice seen by The PUNCH, as well as data from petroleumprice.ng, verified the
adjustment.
The resumed local currency sales come amid renewed
implementation of the Naira-for-Crude initiative—a Federal Executive
Council-backed policy mandating the sale of crude oil and refined products in
naira to support local refining and reduce pressure on Nigeria’s foreign
exchange reserves.
“Our updated prices for 10.04.25 are: PMS Gantry: N865
(inclusive of NMDPRA), PMS Coastal: On hold,” the refinery stated in its
Thursday notice.
Other refined products such as diesel (AGO) and aviation fuel (ATK) remain
priced in dollars.
Fuel Relief in Sight
Industry stakeholders believe the price reduction could translate into a
gradual drop in pump prices across retail outlets. Chinedu Ukadike, National
Publicity Secretary of the Independent Petroleum Marketers Association of
Nigeria (IPMAN), earlier hinted at an anticipated price cut by the refinery,
describing it as a positive development that could ease consumer burden.
“This reduction will give marketers more flexibility
and possibly allow lower pump prices if distribution costs are efficiently
managed,” he said.
Federal Government Reaffirms Support
The resumed naira pricing aligns with a major policy shift led by the Federal
Government. On Wednesday, the Ministry of Finance, via a statement on its
official X handle, reaffirmed the administration’s commitment to the
Naira-for-Crude framework.
The policy, it said, is not a temporary palliative but
a long-term economic strategy designed to boost local refining, strengthen the
naira, and improve energy security.
“The Crude and Refined Product Sales in Naira
initiative is not a temporary or time-bound intervention,” the statement read.
“It is a key policy directive aimed at supporting sustainable local refining
and reducing reliance on foreign exchange in the domestic petroleum market.”
The statement followed a review meeting between
Finance Minister Wale Edun and representatives from the Dangote Refinery—seen
as a major player in Nigeria’s emerging refining sector.
Challenges and Next Steps
While the return to naira sales and price reduction have been widely welcomed,
some industry insiders note that PMS coastal sales remain on hold, potentially
affecting distribution to remote locations dependent on marine logistics.
Nonetheless, the Dangote Refinery’s move could set a
precedent for other players in the sector, particularly as the government
intensifies efforts to end Nigeria’s historic dependence on imported fuel.
As Nigeria’s largest refining facility with a 650,000
barrels-per-day capacity, Dangote’s pricing decisions are likely to shape the
future of the downstream sector—especially as more private refineries come on
stream.
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