Dangote Petroleum Refinery has opened the sale of Premium Motor Spirit (PMS), commonly known as petrol, to all licensed marketers, ending its previous consortium marketing arrangement. The move is expected to reshape competition in Nigeria's downstream petroleum sector.
New Dangote Petrol Price and Policy Change
The decision comes alongside a reduction in the refinery's ex-gantry price of petrol to N1,075 per litre from N1,125. In a statement, Dangote said: "The latest N50 per litre reduction brings the cumulative decrease in the refinery's PMS ex depot price to N200 per litre since May 30, 2026, reducing the gantry price to N1,075. Over the same period, the refinery has reduced the ex-depot price of Automotive Gas Oil (AGO) by N300 per litre and Jet A1 aviation fuel by N520 per litre."
Dangote Refinery also aligned its coastal loading price with the ex-gantry price, eliminating the previous pricing difference between the two channels.
Impact on Competition and Fuel Imports
Industry stakeholders said the policy shift is expected to encourage greater competition among marketers, depot operators, and fuel importers as buyers increasingly turn to the refinery for supplies. The move could reduce dependence on imported petrol by making locally refined products more accessible and competitively priced. Imported cargoes continue to face higher landing costs, making domestic supplies a more attractive option for marketers.
The development is also expected to put pressure on private depot owners, many of whom hold inventories purchased at higher prices. To remain competitive, depot operators may have to reduce their selling prices as marketers seek cheaper supplies directly from the refinery. Fuel importers could also face increased competition, with analysts saying they may be forced to lower prices to compete with locally refined petrol.
Potential for Lower Pump Prices
The opening of sales to all marketers, if sustained, could ultimately translate into lower pump prices for consumers, although retail prices will continue to depend on logistics costs, exchange rate movements, and international crude oil prices.
Diesel Price Rises by 86.40% in May 2026
Earlier, the National Bureau of Statistics (NBS) revealed that the average retail price of Automotive Gas Oil (AGO), commonly known as diesel, increased by 86.40% year-on-year to N3,277.47 per litre in May 2026. According to the latest diesel price watch report released by the statistics agency, the figure rose from N1,758.26 per litre recorded in May 2025. The report also showed that diesel prices increased by 32.44% on a month-on-month basis, rising from N2,474.69 per litre in April 2026 to N3,277.47 per litre in May.
