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Africa’s richest man, Aliko Dangote, has again shaken Nigeria’s downstream petroleum market after his $20 billion Dangote Petroleum Refinery reduced the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, by ₦25 per litre.
According to an official notice issued by the refinery’s Group Commercial Operations Department to marketers, the ex-depot price dropped from ₦799 to ₦774 per litre, and the adjustment took effect immediately. The company formally notified distributors:
“This is to notify you of a change in our PMS gantry price from ₦799 per litre to ₦774 per litre.”
The move signals Dangote’s continued strategy of using his refinery’s scale and supply capacity to influence fuel pricing across Nigeria’s energy market.
End of lifting incentive and market competition strategy
The refinery also disclosed that its PMS lifting incentive programme has ended, indicating a shift in its pricing and distribution structure.
Industry observers say the reduction could make locally refined petrol more competitive against imported products, particularly as marketers constantly compare depot prices before making bulk purchases.
Analysts note that Dangote’s pricing decisions are increasingly shaping the downstream sector because his refinery is currently the largest single refining facility in Africa, capable of producing 650,000 barrels per day.
Dangote’s refinery began delivering petrol in 2024, after first rolling out diesel and aviation fuel earlier that year.
Since then, the facility has steadily expanded production volumes, strengthening domestic supply and reducing Nigeria’s dependence on imported refined petroleum products.
The refinery represents a major private-sector intervention in a country that for decades exported crude oil but relied heavily on imported fuel.
For years, Nigeria swapped billions of dollars’ worth of crude oil for refined products, a practice that strained foreign exchange reserves.
