Dangote Refinery Fixes Petrol Price at $0.779 Per Litre in New Pricing Template
Dangote Petroleum Refinery has unveiled a new pricing template that sets the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, at $0.779 per litre, introducing a dollar-denominated reference for wholesale transactions.The company said the pricing framework is intended to improve transparency and align domestic fuel pricing with international market realities, including fluctuations in crude oil prices and foreign exchange rates.
According to the refinery, the dollar-based template applies to approved commercial transactions and should not be interpreted as the retail pump price paid by consumers at filling stations. Retail prices will continue to depend on distribution costs, taxes, margins and other market factors.
Industry analysts say the move reflects the increasing integration of Nigeria’s downstream petroleum sector with global energy markets following the commencement of large-scale operations at the 650,000-barrel-per-day refinery.The pricing template is also expected to provide marketers and bulk buyers with greater clarity in planning fuel purchases, particularly for transactions involving foreign exchange.
Stakeholders note that the introduction of a transparent pricing mechanism could improve efficiency in the downstream sector and reduce uncertainty associated with frequent changes in international oil prices.The refinery has continued to expand its production and supply of refined petroleum products across Nigeria and other African countries, reducing dependence on imported fuel and strengthening regional energy security.
Economic observers believe the success of the pricing framework will depend on exchange rate stability, crude oil market conditions and the overall implementation of Nigeria’s deregulated petroleum market.
Dangote Refinery remains one of Africa’s largest energy investments and continues to play a central role in reshaping Nigeria’s oil and gas industry.
