By Abubakar Yunusa
Nigeria’s largest private refinery, Dangote Petroleum Refinery & Petrochemicals, has reduced its ex-depot prices for Premium Motor Spirit and Automotive Gas Oil, offering fresh relief to consumers and businesses grappling with high energy costs.
The refinery announced that the ex-depot price of petrol was lowered from N1,275 per litre to N1,250 per litre, while diesel dropped from N1,800 per litre to N1,700 per litre.
The company said the reductions were driven by improved supply efficiency and increased production capacity at its refining complex.
The latest adjustment is part of efforts by the refinery to strengthen local fuel supply, deepen domestic refining and reduce Nigeria’s dependence on imported petroleum products.
Checks show that the refinery has adjusted its petrol price no fewer than 15 times since March 1, 2026, highlighting the persistent volatility in the country’s downstream petroleum market.
In March alone, the refinery reviewed its PMS price nine times, comprising six increases and three reductions. Two upward reviews followed in April, while May recorded four changes, including two increases and two decreases.
The first major adjustment came on March 1 when the refinery raised the ex-depot price from N774 per litre to N874 per litre following a surge in global crude oil prices.
Further increases pushed the price to N995 per litre on March 6 and N1,175 per litre on March 9 as international oil benchmarks climbed amid geopolitical tensions and supply concerns.
A temporary decline in crude prices led to a N100 reduction on March 10, bringing the price down to N1,075 per litre. However, the relief was short-lived as the refinery restored the price to N1,175 per litre three days later.
Between March 20 and 21, petrol prices rose twice to reach N1,275 per litre before dropping to N1,200 per litre on March 26 following market corrections and increased competition among depots.
The refinery resumed upward adjustments in April, increasing the price to N1,275 per litre on April 7 and implementing another hike later in the month due to rising refining costs.
May witnessed another round of fluctuations. The refinery increased the price to N1,350 per litre on May 5 and 6 but quickly reversed the decision, returning it to N1,275 per litre. The latest reduction to N1,250 per litre took effect on May 29 and 30.
Industry observers say the reduction in ex-depot prices could ease pressure on fuel distributors and potentially lead to lower pump prices, although transportation costs, taxes and marketers’ margins remain key determinants of retail prices.
For manufacturers and businesses that depend heavily on diesel-powered operations, the N100 reduction in AGO is expected to provide modest savings, particularly in sectors with high energy and logistics costs.
With a refining capacity of 650,000 barrels per day, the Dangote refinery continues to expand its role in Nigeria’s fuel supply chain. Analysts, however, note that consumers will only feel meaningful relief if reductions at the depot level are fully transmitted through distribution networks to filling stations across the country.
The development comes as Nigeria seeks to leverage domestic refining to cut import costs, improve supply stability and reduce the impact of foreign exchange volatility on fuel prices.
