KEY POINTS
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Dangote Refinery increased petrol gantry price to ₦877 per litre.
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Depot owners may lower prices to stay competitive.
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Industry players say local refining strengthens energy independence.
Nigeria’s energy market is once again adjusting to shifts from the Dangote Petroleum Refinery, which resumed full-scale operations this week while revising the gantry price of Premium Motor Spirit, or petrol, to ₦877 per litre. The new price reflects a seven percent rise from ₦820 per litre. Yet, even with the increase, the refinery’s rate remains below the ₦890 to ₦900 per litre charged by most private depot owners.
Dangote Refinery petrol price challenges depot owners
Checks by Vanguard showed that oil marketers purchasing two million litres or more will still benefit from lower bulk rates. Data from Petroleumprice.ng on Tuesday confirmed that several major depot operators, including Pinnacle and Rainoil, maintained their depot prices at ₦890 and ₦885 per litre, respectively. Others such as Optima and Matrix pegged theirs at ₦880 and ₦890 per litre.
Olatide Jeremiah, Chief Executive Officer of Petroleumprice.ng, noted that a “price war” continues to unfold across the downstream sector. “With its massive capacity of 650,000 barrels per day, the Dangote Refinery dictates the pace,” he said. Jeremiah suggested that depot owners might have to lower their prices in the near future, particularly if the refinery maintains its supply momentum. He also expressed hope that retail outlets nationwide would eventually reflect the expected reductions.
Growing optimism for energy independence
Market visits indicated that many filling stations were still selling petrol above ₦900 per litre despite the refinery’s lower gantry rate. However, industry players remain optimistic. The President of the Oil and Gas Service Providers Association of Nigeria, Mazi Obasi, praised the Dangote team for “resilience in overcoming economic and operational challenges.”
Obasi described the refinery’s success as a defining moment for Nigeria’s energy future, citing its potential to boost local refining capacity, create jobs, and strengthen the country’s foreign exchange position. He pledged OGSPAN’s continued partnership with the refinery to promote awareness about the economic advantages of domestic fuel production and its role in stabilizing prices in the long run, according to Vanguard.
