For the second time in one week, Dangote Petroleum Refinery has announced a reduction in the price of premium motor spirit (PMS) otherwise known as petrol.

With effect from yesterday (April 16th, 2025), the gantry price (ex-depot price) of petrol would now go from N865 to N835.

This would be the second price reduction within a week as Dangote Refinery earlier slashed the price from N880 to N865 per litre.

However, as of yesterday, prices are yet to change at most filling stations including the retail outlets belonging to the Nigerian National Petroleum Company Limited (NNPCL).

While marketers welcomed the decision by Dangote, they however expressed mixed reactions over what they called, “arbitrary” reduction which portends losses to the market.

Group Chief Branding and Communications Officer of Dangote Industries, Anthony Chiejina, in a statement said, “High-quality Dangote petrol will now be available at the following prices across all our partner retail outlets….”

He said key partners, including MRS, AP (Ardova), Heyden, Optima Energy, Hyde and Techno Oil, will offer petrol at N890 per litre, down from N920 in Lagos.

In the South West, the price will be N900 per litre, reduced from N930 while in the North West and North Central, the price will be N910 per litre, lowered from N940.

In the South East, South South, and North East, the price will be N920 per litre, down from N950.

The statement said, “These price reductions reaffirm our commitment to providing high-quality petrol at affordable rates, benefiting consumers across the nation. In addition, we are working collaboratively with our partners to ensure equitable reflection of this price reduction.

“Dangote Petroleum Refinery has consistently worked to reduce the prices of petrol and other refined petroleum products, ensuring the continued benefit of Nigerian consumers. For example, in February, the refinery reduced prices twice by N125. In addition, products such as diesel and Liquefied Petroleum Gas (LPG) have also experienced significant price reductions due to the refinery’s sustained efforts.

“We anticipate that this latest reduction in PMS prices will generate a positive ripple effect throughout various sectors of the economy, providing much-needed relief to consumers and contributing to broader economic growth, particularly during the Easter season.

“Dangote Petroleum Refinery remains steadfast in its commitment to ensuring a steady supply of premium-quality petroleum products, with sufficient reserves to meet domestic demand, along with a surplus for export. This strategy is designed to support the stability of the domestic market while also contributing to the growth of Nigeria’s foreign exchange reserves.”

The refinery however called on industry stakeholders, including marketers and distributors, to continue sourcing their products from the refinery, ensuring that the benefits of these price reductions are fully realised across the country.

It was learnt that the reduction in price of crude oil was one of the reasons behind the price change.

Global crude oil price has been experiencing volatility in recent times as the US tariff war rages.

Crude oil edged more than 2% higher on Wednesday following expectations of tensions easing in the US-China trade war.

At 1:28 p.m. ET, Brent crude was trading up 2.09% at $66.02, while the US benchmark, West Texas Intermediate (WTI), was trading up 2.12% at $62.63.

But as of 8 p.m. yesterday, Brent Crude further dipped to 65.77.

‘Most filling stations yet to adjust’

As of the time of filing this report, most filling stations across the country are yet to adjust their pump prices with a litre of PMS still sold as much as N990 in some parts of Nigeria.

In Kano, some independent stations were selling at N990 while the NNPC and MRS were selling at N945. In Maiduguri, Bornu State, a litre was sold at between N950 and N980.

In Abuja, NNPCL sells at N950 per litre while other major stations sell between N955 and N960.

There are indications that NNPCL would also adjust its pump price as it is always the case when Dangote slashes its price but as of the time of filing this report, the price adjustment has not been done.

Marketers react, express concern over ‘arbitrary’ price change

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said while the price reduction was a welcome development especially for Nigerians desirous of energy availability and affordability, he advised that price reduction should not be arbitrary.

Dr Billy Gillis-Harry, the national president of the association, in a chat with our correspondent said the frequent price changes have implications for investment in the downstream sector.

He said the 180 days suggested by the marketers should be implemented to give room for the players to observe the market trend and determine the direction of the price.

Gillis-Harry said, “It (price reduction) is a welcome development for us and Nigerians who are insisting there should be energy availability. Petroleum products are a major source of energy availability. So, we are happy as PETROAN to hear prices being reduced but the price reduction and increase should not be arbitrary, should be what the market should dictate so that we do not create some kind of artificial difficulty of availability of funds to invest in petroleum business for the use of Nigerians. But other than that, it is a welcome development.

“But the same thing we keep advising that prices should be dictated by the vagaries of the economy so that we would know for certain that this is the reason why there is a cost increase or cost decrease and this is the way we can stabilise the market.

“We had asked for some kind of intervention of stability within the period of 180 days within which we should be able to observe what would become an average under the supervision of NMDPRA and the Federal Competition and Consumer Protection Council (FCCPC). So that way we could really tell if there is a price gouging or if there is a determined price engineering to create a monopoly or to keep anybody out of business.”

Another petroleum marketer, Otunba Adetunji Oyebanji, said there is nothing unusual with the price reduction, adding that in a fully deregulated market like Nigeria’s, competition and market dynamics would continue to drive the price downward and upward.

“This is all about competition and market dynamics. Be watching market dynamics. If crude is doing something, you would know it would affect the price, if exchange rate is being affected, a price change is likely to come. If you watch all these factors that affect price, you would be able to predict whether something is going to happen.

“It’s not rocket science. The market would adjust. This (Dangote) is the biggest local supplier, once he adjusts the price, other people would adjust accordingly because you can now buy cheaper. But don’t forget some people have old stock, so they might not be quick to bring down their price otherwise they would take a loss,” he said.