Key highlights
- Dangote Petroleum Refinery cut Premium Motor Spirit gantry price to N1,200 per litre and coastal price to N1,153 per litre.
- The ex-depot price reduction should lower marketers' supply costs and pressure retail pump prices downward.
- The cut comes despite rising crude prices driven by Middle East tensions that are disrupting shipping, insurance and supply chains.
- Large-scale local refining capacity is acting as a stabiliser, offering some insulation from external oil-market shocks.
Price update
Dangote Petroleum Refinery & Petrochemicals cut its gantry price for Premium Motor Spirit (PMS) to N1,200 per litre and set a coastal price of N1,153 per litre, representing a downward review of ex-depot pricing.
Market context
The reduction comes amid rising global crude prices driven by tensions in the Middle East, which have been exerting upward pressure on benchmark crude, freight costs and insurance premiums.
Downstream implications
Lower ex-depot prices are expected to ease supply costs for marketers and put downward pressure on retail pump prices across Nigeria’s downstream sector.
Role of local refining
Presence of large-scale local refining capacity is being viewed as a stabiliser that can offer some insulation from external supply shocks and market volatility.
