Shittu Oluwadamilola - Lagos
Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS) by ₦25 per litre, bringing the gantry price down from ₦799 to ₦774 per litre. Industry analysts say the move reflects a strategic price adjustment amid shifting market conditions in 2026.
The refinery notified marketers of the price reduction on Tuesday, stating that the new rate takes immediate effect.
In a circular issued by its Group Commercial Operations Department, Dangote Petroleum Refinery and Petrochemicals FZE said:
“This is to notify you of a change in our PMS gantry price from ₦799 per litre to ₦774 per litre.”
The company also announced the conclusion of its PMS lifting incentive scheme. According to the notice, the bonus programme ended at 12:00 a.m. on 10 February 2026, with credits for qualifying volumes loaded between 2 and 10 February to be reflected in marketers’ account statements.
The end of the incentive scheme, alongside the price reduction, signals a shift from volume-based inducements to a more stable pricing framework as the refinery strengthens its foothold in the domestic market.
The latest cut comes against the backdrop of significant volatility in PMS pricing throughout 2025, following the full deregulation of Nigeria’s downstream petroleum sector and the removal of fuel subsidies. During the year, ex-depot prices fluctuated widely—ranging from about ₦700 to over ₦800 per litre—driven by exchange rate pressures, global crude oil price movements and heavy dependence on imported fuel. Retail pump prices rose even higher in several parts of the country.
However, the commencement of large-scale domestic supply from the Dangote refinery towards the end of 2025 helped ease price pressures, particularly in coastal and southern distribution corridors, reducing reliance on import parity pricing.
In early 2026, the refinery raised its PMS gantry price to ₦799 per litre after selling petrol at ₦699 per litre during the festive period.
The latest reduction to ₦774 per litre points to easing cost pressures, improving operational efficiency and intensifying competition from alternative supply sources, including imported cargoes and anticipated output from modular refineries.
With a refining capacity of 650,000 barrels per day, Dangote Petroleum Refinery is Africa’s largest single-train refinery and a key pillar of Nigeria’s strategy to cut fuel imports and conserve foreign exchange. Since beginning domestic PMS supply, the refinery has played an increasingly influential role in shaping downstream pricing, often serving as a benchmark for ex-depot rates nationwide.
