The Dangote Petroleum Refinery has reduced the
ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, to
?820 per litre, effective Tuesday, August 12, 2025.
The new price represents a ?30 or 3.53% drop from the
previous ?850 per litre. According to a statement posted on X (formerly
Twitter) by the Dangote Group, the revised pricing applies to all major fuel
marketers in partnership with the refinery, including MRS, Ardova, Heyden,
Optima Energy, Techno Oil, and Hyde Energy.
The ex-depot price is the wholesale rate at which
depot owners sell petroleum products to marketers and retail stations.
Background
This reduction comes just days after the Nigerian National Petroleum Company
Limited (NNPCL) increased its petrol pump price to ?895 per litre on Friday,
August 8, up from ?875. On Thursday, August 7, Dangote Refinery had also raised
its own ex-depot price from ?820 to ?852 per litre before reversing course with
the latest cut.
Earlier this month, the refinery announced the arrival
of 4,000 brand-new Compressed Natural Gas (CNG) trucks in Lagos as part of its
nationwide fuel distribution programme, set to begin on August 15. Industry
experts, including the Presidency, the Independent Petroleum Marketers
Association of Nigeria (IPMAN), and energy analysts, have welcomed the move,
describing it as a critical step toward reducing distribution costs,
stabilising fuel prices, and modernising Nigeria’s downstream petroleum sector.
Why It Matters
The $20 billion Dangote Refinery, with a capacity of 650,000 barrels per day,
is Africa’s largest and one of Nigeria’s most significant infrastructure
investments in the oil sector. By refining domestically and cutting reliance on
imports, the facility has the potential to stabilise fuel supply, ease foreign
exchange pressure, and lower costs for consumers.
With global crude prices remaining volatile and the
naira still under strain, price adjustments from the refinery could help shield
Nigerians from the full impact of international market shocks—if the savings
are passed down the supply chain.
According to the National Bureau of Statistics (NBS),
the average retail price of petrol in June 2025 stood at ?1,037.66 per litre,
up from ?750.17 in June 2024, with some states recording prices far above the
national average due to transportation and distribution challenges. Given
Nigeria’s dependence on petrol-powered vehicles and generators amid unreliable
electricity supply, fuel price movements have a direct impact on household and
business costs nationwide.
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