Dangote Refinery Announces Significant Petrol Price Reduction
In a major development for Nigeria's energy sector, Dangote Petroleum Refinery and Petrochemicals has implemented a substantial reduction in its Premium Motor Spirit (PMS) gantry price. The refinery has slashed the price by N27 per litre, bringing it down from N799.50 to N772.50 per litre. This adjustment, which took effect on February 2, represents one of the most significant single price movements recorded so far in 2026.
Strategic Price Adjustment Amid Market Competition
The price reduction comes as Dangote Refinery responds to increasing competition from private depot operators and seeks to maintain its competitive positioning in the domestic fuel market. According to industry reports, this strategic move is designed to encourage marketers to lift larger volumes of fuel from the refinery's facilities. By offering more attractive pricing, Dangote aims to boost throughput and ensure consistent product evacuation from its world-class operations.
The refinery has simultaneously revised its weekly lifting bonus structure for marketers, creating additional incentives for increased volume purchases. Under the updated incentive program, marketers now receive weekly bonuses ranging from N20 per litre for volumes between 250,000 and 1,999,999 litres, N25 per litre for volumes between 2,000,000 and 4,999,999 litres, and N30 per litre for volumes of 5,000,000 litres or more.
Gantry Loading Advantages and Cost Efficiency
Dangote Refinery has been actively promoting direct gantry evacuation as the most cost-effective method for marketers to access its products. The company operates an extensive gantry facility featuring 91 loading bays with the capacity to handle up to 2,900 tankers daily. This infrastructure enables the evacuation of over 50 million litres of PMS and 14 million litres of diesel through continuous 24-hour operations.
The refinery emphasizes that gantry loading eliminates various additional costs associated with coastal loading methods, including port charges, maritime levies, and vessel-related expenses. These savings can be substantial, with coastal logistics potentially adding approximately N75 per litre to final petrol costs. If such additional expenses were passed on to consumers, pump prices could approach N1,000 per litre in some markets.
Market Impact and Industry Context
Industry analysts anticipate that Dangote's price reduction will influence depot and retail pricing across major supply corridors, particularly in Lagos and surrounding states. This development occurs against the backdrop of Nigeria's ongoing efforts to stabilize domestic fuel supply and pricing. The refinery has committed to meeting domestic fuel demand while working to ease fuel costs for Nigerian consumers through strategic pricing adjustments.
The current market dynamics contrast with recent developments in Nigeria's state-owned refining sector. The Nigerian National Petroleum Company Limited (NNPC Ltd) recently provided details regarding the shutdown of the country's four government-owned refineries. During the 9th Nigeria International Energy Summit, NNPC's Group Chief Executive Officer cited persistent commercial losses, low utilization rates, and rising operating costs as primary factors behind these decisions.
As Dangote Refinery continues to optimize its operations and pricing strategies, market observers will be monitoring how this significant price adjustment affects Nigeria's broader energy landscape and consumer fuel costs throughout 2026.
