The Dangote Petroleum Refinery resumed full-scale operations on Thursday, raising its Premium Motor Spirit (PMS) gantry price to N877 per litre, up 7% from its previous rate of N820.
Despite the increase, Dangote’s new bulk price remains lower than current rates charged by many private depot owners, which range between N880 and N900 per litre.
According to data from Petroleumprice.ng, depot operators such as Pinnacle and Rainoil priced PMS at N890 and N885 per litre, respectively. Optima and Matrix posted prices of N880 and N890.
Oil marketers purchasing volumes of 2 million litres or more are expected to benefit most from Dangote’s competitive pricing.
“The downstream sector remains in a price war,” said Olatide Jeremiah, CEO of Petroleumprice.ng. “With a capacity of 650,000 barrels per day, Dangote Refinery is setting the pace. We expect other depot owners to follow suit by reducing their prices in the coming weeks. The hope is that lower depot prices will trickle down to filling stations nationwide.”
However, spot checks by Vanguard revealed that many filling stations were still retailing PMS at prices above N900 per litre.
Reacting to the refinery’s full restart, Mazi Obasi, President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), praised the Dangote Refinery’s resilience amid operational challenges.
“The successful start of operations at Dangote Refinery is a major milestone in Nigeria’s drive toward energy independence and economic stability,” Obasi said.
“OGSPAN is committed to supporting the refinery through public awareness campaigns that highlight the benefits of local refining, including job creation and foreign exchange savings.”
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