Dangote undercuts imported fuel again with fresh price drop

Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit, PMS, by N25 per litre, bringing its ex depot rate down from N799 to N774 per litre. The new price takes immediate effect nationwide, according to a notice issued to marketers on Tuesday.

In its communication to industry players, the refinery stated that the adjustment reflects a change in its PMS gantry price from N799 per litre to N774 per litre. The move positions the refinery more competitively in the domestic market.

With the landing cost of imported PMS from Lome currently estimated at about N793 per litre, Dangote’s new ex depot price of N774 per litre creates a N19 margin in favour of locally refined fuel. The development strengthens the refinery’s competitive edge against imports and may influence pump prices across retail outlets.

The price cut comes barely two weeks after the refinery raised its ex gantry price to N799 per litre from N699, a decision that pushed pump prices at MRS Oil Nigeria Plc outlets to N839 per litre nationwide.

At the time of the increase, the refinery explained that it had concluded a temporary festive price support intervention introduced during the yuletide period to cushion the impact of economic hardship and rising household spending. Dangote Refinery said it absorbed significant costs in the national interest during that intervention, describing the pricing adjustments as part of efforts to ensure long term sustainability, affordability and stability in the downstream petroleum market.

Dangote’s latest N25 price cut reflects the growing influence of a dominant domestic refiner in shaping Nigeria’s downstream petroleum market, but it also exposes the volatility and opacity that still define fuel pricing. While consumers may welcome any reduction, the quick succession of a sharp increase followed by a partial rollback raises questions about pricing transparency, competitive fairness and regulatory oversight in a market that is supposedly deregulated. The marginal gap between local and imported fuel prices further highlights how external factors such as exchange rates and global crude trends continue to dictate domestic costs. Ultimately, the episode reflects a sector in transition, where relief at the pumps remains fragile and heavily dependent on the pricing decisions of a few powerful players rather than a truly competitive and stable market structure.