Dangote Petroleum Refinery has cut the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N880 per litre to N865 per litre, marking a 1.7% reduction.
The decrease is a result of the drop in crude oil prices, which have fallen to $63 per barrel in April from over $70 per barrel in March 2025.
Reports from Vanguard confirm that oil marketers, including MRS, have started purchasing petrol at the new rate of N865 per litre from the Dangote Refinery, which has a daily capacity of 650,000 barrels.
Some operators, such as MRS and Adorva, are expected to lower their pump prices from above N930 per litre to N910 per litre.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), expressed hope that this reduction in the ex-depot price would lead to lower petrol pump prices, benefiting consumers.
However, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), raised concerns about the economic implications of falling oil prices.
He pointed out that Nigeria’s 2025 budget is based on an oil price of $75 per barrel, but the current price of $60 per barrel could lead to revenue shortfalls.
With oil contributing to 60-70% of Nigeria’s revenue, this decline may also put pressure on the exchange rate, potentially worsening the country’s economic situation.
Leave a Reply