In a significant move that signals a potential reprieve for the Nigerian energy market, Dangote Petroleum Refinery & Petrochemicals has announced a sharp reduction in its ex-depot prices for Premium Motor Spirit (PMS). On Thursday, March 26, 2026, the 650,000-barrel-per-day facility revised its gantry price downward to ₦1,200 per litre, a notable shift from the previous peak of ₦1,275 recorded earlier in the week.
The refinery also pegged its coastal price at ₦1,153 per litre, a strategic adjustment designed to lower the landing costs for marketers utilising marine distribution channels. The downward review comes as a surprise to many industry observers, given the ongoing volatility in the Middle East, which has kept international Brent crude benchmarks hovering near the $100 mark. According to Anthony Chiejina, the spokesperson for the Dangote Group, the adjustment reflects the refinery’s commitment to internalising market efficiencies despite external pressures.
“The adjustment marks a downward review in the refinery’s pricing structure and is expected to influence fuel supply costs across distribution channels, including depots and retail outlets,” Chiejina stated. The move is seen as an attempt to stabilise the domestic market after five consecutive price hikes in March 2026 alone, which had seen retail prices in some parts of the country soar toward ₦1,400 per litre.
News: http://Market Failures Root of Nigeria’s Power Crisis – NERC Chairman
For the Nigerian downstream sector, the ₦1,200 gantry price represents a critical psychological and economic floor. With the coastal price set even lower at ₦1,153, depots in the southern corridors, particularly those in Port Harcourt, Lagos, Warri, and Calabar, are expected to see a reduction in their sourcing costs. Financial analysts suggest that if the current exchange rate remains stable, retail pump prices could potentially retreat toward the ₦1,250–₦1,280 range by the weekend.
This would provide much-needed relief to transport operators and small businesses who have struggled with the nearly 40% surge in energy costs since the escalation of global geopolitical tensions in late February. Despite the price cut, the refinery continues to navigate a complex operational landscape. Earlier this week, David Bird, the Chief Executive Officer of the refinery, highlighted that the facility is still grappling with an “inadequate crude oil supply,” receiving significantly fewer than the 15 monthly cargoes required for full-capacity operations.
However, the refinery’s ability to crash prices while international crude remains relatively high suggests that it is leveraging its massive scale to act as a shock absorber for the Nigerian economy. This role as a domestic buffer has become increasingly vital as many other West African nations face even steeper price hikes due to their total reliance on imported refined products.
