Dangote Petroleum Refinery & Petrochemicals has lowered its gantry price for Premium Motor Spirit (PMS), also known as petrol, to N1,200 per litre, down from over N1,270 per litre.
The spokesperson for the Dangote Group, Anthony Chiejina, explained that the reduction reflects a revision of the refinery’s pricing structure, influenced by trends in the global oil market.
He said: “Dangote Petroleum Refinery & Petrochemicals has reduced its gantry price for petrol to N1,200 per litre and its coastal price to N1,153 per litre. This move comes amid ongoing tensions in the Middle East, which continue to influence global oil markets.
“The adjustment marks a downward review in the refinery’s pricing structure and is expected to impact fuel supply costs across distribution channels, including depots and retail outlets.”
He added that the new coastal price of N1,153 per litre is expected to affect marine supply to depots across southern Nigeria.
Meanwhile, the Chief Executive Officer of Dangote Petroleum Refinery, David Bird, recently pointed to operational challenges, particularly insufficient crude oil supply.
He stated that the refinery is built to receive between 13 and 15 cargoes monthly, but current supply falls below that level, affecting operations.
He also noted that the difference between crude purchase costs and prevailing premiums results in financial losses to international traders rather than Nigeria.
“That value between the purchase price and the premium we’re now seeing is money Nigeria is leaking to the international trading community,” he said.
Addressing the crude-for-naira policy, Bird said it is widely misunderstood.
“Crude-for-naira is not designed to benefit Dangote Refinery. It is intended to provide resilience to foreign exchange. It is in the country’s interest to process domestic crude in local currency.”
Despite the supply issues, he maintained that the refinery is running at full capacity and continues to supply both local and regional markets.
