Dangote Refinery Reverses Fuel Price Hike Amid Market Pressure

The Dangote Refinery has reversed its recent increase in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, following pressure from market forces and ongoing competition in Nigeria’s downstream oil sector.

Industry sources disclosed that the refinery adjusted its petrol loading price downward after marketers and independent fuel importers expressed concerns over the earlier hike, which had triggered fears of another nationwide increase in pump prices.

The reversal is expected to bring temporary relief to consumers and transport operators already battling rising living costs and inflation across the country. Petroleum marketers said the decision could stabilize retail prices in several states if crude oil prices and foreign exchange rates remain relatively steady.

The refinery had earlier raised its petrol price due to fluctuations in global crude oil prices, exchange rate instability, and operational cost pressures. However, the latest adjustment signals an attempt to maintain competitiveness and sustain supply dominance in Nigeria’s fuel market.

Energy analysts believe the move may also intensify price competition between the refinery, fuel importers, and depot owners, especially as the Federal Government continues reforms in the petroleum sector after subsidy removal.

Stakeholders in the oil and gas industry noted that consistent pricing policies and stable supply from the refinery could help reduce fuel scarcity concerns and improve confidence in the domestic refining system.