Dangote Petroleum Refinery has reduced the ex-depot price of premium motor spirit (PMS), commonly known as petrol, to N840 per litre from N880 per litre as global crude oil prices fall.
The downward review of the price of the petroleum product was confirmed in an update provided by a spokesman for the refinery, Mr Tony Chiejina.
Mr Chiejina said the new ex-depot price took effect on Monday, June 30, 2025, about a week after the Lagos-based refinery jacked up the price to N880 per litre.
The N40 reduction followed a drop in oil prices on Monday as the two-week Middle East conflict between Israel and Iran eased just as the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) plans to increase output for the third straight month in August.
The ceasefire between the two countries saw Brent crude fall to $67.61 a barrel from around $80 a barrel after the United States bombed Iran’s nuclear facilities.
With prices now down, the partners of the private refinery like MRS Oil & Gas, Ardova Plc, Heyden, and other retail stations will reduce the price of the commodity.
It is expected that pump price will go below N900 per litre to reflect the marginal reduction in the ex-depot price of the premium commodity.
Dangote Refinery is planning to begin distribution of petroleum products to retailers from next month to support marketers, dealers, companies, and other large users across the country.
The 650,000 barrels-per-day capacity refinery said it has procured 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers for the take-off of the initiative on August 15, 2025.
It also offered a credit facility to those purchasing a minimum of 500,000 litres, allowing them to obtain an additional 500,000 litres on credit for two weeks, under a bank guarantee.
Although it initially kicked against the move, the Independent Marketers Association of Nigeria (IPMAN) did a U-turn and claimed that the move would help businesses and stabilise the economy.
Since the removal of fuel subsidy by President Bola Tinubu in May 2023, prices have been left to the whims of supply and demand rather than by the government.
The Dangote Refinery is also expected to save Nigeria on high import costs and allow the Naira to strength at the foreign exchange market.