The Dangote Petroleum Refinery has reduced its ex-depot (gantry) price of Premium Motor Spirit (PMS), popularly known as petrol, from N1,250 per litre to N1,175 per litre, a move expected to trigger a downward review of fuel pump prices across Nigeria.

The refinery announced the N75 reduction on Monday, informing marketers that the new price would take effect immediately. The company also stated that all outstanding petrol volumes yet to be loaded would be repriced at the new rate.

The latest adjustment comes amid easing global crude oil prices and improving market conditions, factors that industry stakeholders believe influenced the refinery’s decision. Analysts say the reduction is likely to provide some relief to consumers who have grappled with rising transportation and energy costs since the removal of fuel subsidies.

In addition to the reduction in the gantry price, Dangote Refinery also reviewed its coastal loading price downward, reducing it by more than N100,000 per metric tonne. The move is expected to strengthen competition within Nigeria’s downstream petroleum sector and encourage marketers to adjust retail prices accordingly.

Industry operators have welcomed the development, noting that the refinery’s growing production capacity is beginning to have a stabilising effect on domestic fuel supply and pricing. They, however, cautioned that the extent of reductions at filling stations would depend on other cost factors, including transportation expenses, depot charges, and operational costs borne by marketers.

The latest cut follows an earlier reduction by the refinery in recent weeks, signalling a shift from the upward pricing trend that had dominated the market due to volatility in international crude oil prices and foreign exchange pressures.

Economic analysts believe the decision could help ease inflationary pressures, particularly in the transportation and logistics sectors, where fuel costs account for a significant portion of operating expenses.

Many fuel marketers are now expected to review their pump prices in line with the new ex-depot rate. Consumers across the country are also anticipating a reduction in retail petrol prices as supplies purchased at the revised rate begin to reach filling stations.

Since commencing operations, Dangote Refinery has emerged as a major player in Nigeria’s energy sector, with its pricing decisions increasingly influencing market trends and competition among fuel suppliers.

Observers say that if global crude oil prices remain stable and the naira maintains relative strength against major foreign currencies, Nigerians could witness further reductions in petrol prices in the coming weeks.