The Dangote Petroleum Refinery has lowered the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N1,275 per litre to N1,250 per litre, marking a two per cent reduction.
Checks across the market by Vanguard confirmed the adjustment as competition continues to grow in Nigeria’s deregulated downstream petroleum sector, alongside falling crude oil prices in the global market.
A refinery representative confirmed the price cut, explaining that it was driven by the continued decline in international crude oil prices, which serve as the refinery’s primary raw material.
The official stated that the refinery had revised its petrol loading price in response to lower crude oil costs. He noted that such price movements are normal in a deregulated environment where market conditions largely determine pricing.
The representative further explained that the company is closely watching market trends and will keep reviewing its prices based on prevailing economic conditions.
Despite the reduction, investigations revealed that many filling stations nationwide have not yet adjusted their pump prices. Petrol is still being sold for more than N1,350 per litre in several locations, depending on the marketer and region.
In a related development, the refinery recently highlighted its growing role in strengthening Nigeria’s economic prospects following the country’s sovereign credit rating upgrade by S&P Global Ratings.
The company noted that S&P raised Nigeria’s long-term foreign and local currency sovereign credit ratings from “B-” to “B”, pointing to stronger economic expansion, healthier external reserves, increased crude oil output, and improved local refining capacity as major drivers of the country’s recovery.
According to the refinery, the ratings agency specifically referenced the increasing operations of the 650,000-barrels-per-day Dangote Petroleum Refinery & Petrochemicals as an important factor behind Nigeria’s stronger balance of payments and overall economic stability.
The company added that substantial refining capacity has now come on stream, with the Dangote refinery and petrochemical complex operating close to its full processing capacity of 650,000 barrels per day.