Motorists and fuel marketers may soon experience some relief following the decision by Dangote Petroleum Refinery to lower its ex-depot price of Premium Motor Spirit (PMS), commonly referred to as petrol, from ₦1,250 to ₦1,175 per litre.
Price Reduction Effective June 16
The ₦75 reduction took effect on June 16, 2026. The refinery attributed this price cut to the recent de-escalation of tensions in the Middle East and a decline in global crude oil prices. The announcement came days after the United States and Iran reached a peace agreement, which included plans to reopen the strategic Strait of Hormuz, a vital corridor for global oil shipments. This development alleviated concerns about supply disruptions that had previously driven energy prices higher.
Impact on Marketers and Consumers
In a notice to customers, Dangote Refinery stated that the downward review was prompted by the easing geopolitical tensions, which have influenced global energy markets. The refinery also reduced its coastal loading price from ₦1,595,790 per metric tonne to ₦1,495,215 per metric tonne. Additionally, all outstanding unloaded gantry volumes will be repriced at the new rate effective from the announcement date.
This reduction is expected to lower the cost of petrol purchases for marketers who source directly from the refinery. However, the extent to which consumers benefit will depend on how quickly filling stations adjust their pump prices and whether existing stocks were purchased at higher rates.
Understanding Ex-Depot Pricing
The ex-depot price is the amount marketers pay before adding costs for transportation, storage, distribution, and retail margins. Consequently, changes at the depot level do not always translate immediately into equivalent reductions at filling stations.
The price adjustment comes as Nigeria's downstream petroleum market continues to respond to international oil market developments. In recent months, fluctuations in crude oil prices driven by geopolitical tensions in the Middle East have influenced petrol pricing across the country.
Dangote Refinery's latest move reinforces its growing influence in Nigeria's deregulated fuel market, where pricing decisions by major suppliers increasingly shape market trends.
