The eagerly anticipated price cut in petroleum products following Dangote Refinery’s recent ex-depot price reduction is not expected to immediately translate into lower pump prices nationwide, according to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN). The national president of PETROAN, Billy Gillis-Harry, welcomed Dangote Refinery’s price reduction but explained that implementing these changes at retail stations across Nigeria will require more time.
Dangote Petroleum Refinery made headlines on February 1, 2025, with the announcement of a significant price reduction for Premium Motor Spirit (PMS), commonly known as petrol. The ex-depot price dropped from N950 to N890 per liter, a move the refinery attributed to favorable shifts in global energy and gas markets, coupled with a decline in international crude oil prices.
According to a statement from Anthony Chiejina, Dangote Group’s Chief Branding and Communications Officer, the price revision is part of the refinery’s ongoing commitment to transparency and fairness. This follows a previous price hike in January 2025, when crude oil prices surged, forcing a price increase. Dangote’s new price adjustment is aimed at reducing petrol costs across Nigeria, which is expected to lower the prices of goods and services, ease the cost of living, and bring about a positive economic ripple effect.
However, PETROAN’s president cautioned that the reduction might not be immediately noticeable at the pumps. “Price changes are not usually instantly applicable,” Gillis-Harry explained. He further emphasized that many filling stations still have fuel purchased at the previous, higher price, making it difficult for them to adjust pump prices right away. “We have already bought products at the price it was prior to the changes made,” he stated.
Gillis-Harry urged PETROAN members to adjust their retail prices accordingly when purchasing fuel at the new, reduced price, even though some stations may take time to reflect the adjustment. He also expressed confidence in the collaboration between the association, Dangote Refinery, and other stakeholders to maintain fair pricing in the downstream petroleum sector. He insisted that those buying at the new price should ensure it is reflected in their retail outlets for consistency and fairness in the market.
In a related development, PETROAN also revealed that its members are now loading petroleum products from the Port Harcourt and Warri refineries. This marks a crucial shift, dispelling previous doubts about the operational status of Nigerian National Petroleum Company Limited’s (NNPC) refineries. PETROAN’s spokesperson, Joseph Obele, confirmed that petroleum products, including Dual-Purpose Kerosene, Automotive Gas Oil, and Premium Motor Spirits, are now being loaded from these refineries.
This resurgence of operational refineries in Nigeria is set to stir intense competition in the market, driving down petroleum prices and benefiting consumers. The revitalization of these refineries also addresses the rampant issue of adulterated diesel and kerosene in the Nigerian market, a problem that has put consumers at serious risk.
As the competition intensifies with the resurgence of local refining capacity, the future of Nigeria’s petroleum market appears poised for positive transformation. The renewed functionality of local refineries and the price adjustments from Dangote Refinery reflect a broader move toward self-sufficiency and economic stability for Nigeria, a country that has long struggled with reliance on imported refined petroleum products.
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