Dangote Petroleum Refinery has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, in a strategic move to provide economic relief ahead of the Ramadan season. Effective February 27, 2025, the price will decrease by ₦65, from ₦890 to ₦825 per litre.
This marks the second price reduction by Dangote Refinery in February 2025, following a ₦60 decrease earlier in the month.
In December 2024, during the yuletide season, the refinery also reduced petrol prices by ₦70.50, lowering the cost from ₦970 to ₦899.50 per litre.
These adjustments align with President Bola Ahmed Tinubu’s economic recovery plan, aiming to alleviate financial burdens on Nigerians.
The new pricing structure will be reflected at various partner retail outlets. For instance, MRS Holdings stations will offer petrol at ₦860 per litre in Lagos, ₦870 per litre in the South-West, ₦880 per litre in the North, and ₦890 per litre in the South-South and South-East regions.
However, this aggressive pricing strategy has raised concerns among petroleum importers. Importers fear that Dangote Refinery’s continuous price reductions may force them to sell below cost as consumers gravitate towards more affordable options.
The landing cost of imported petrol currently stands at approximately ₦927 per litre, making it challenging for importers to compete with Dangote’s pricing.
Industry experts warn that this development could lead to significant disruptions in the downstream petroleum sector.
Smaller importers, in particular, may struggle to remain competitive, potentially leading to a market realignment favouring local production over imports.
Despite these concerns, Dangote Refinery assures the public of a steady and sufficient supply of petroleum products to meet domestic demand, with surplus capacity aimed at boosting Nigeria’s foreign exchange earnings through exports.
