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By Tracy Moses
Dangote Petroleum Refinery has clarified that the recent nationwide reduction in petrol (PMS) pump prices was prompted entirely by its own price review on November 6, not by the temporary rollback of a 15% import tariff, as some speculated.
In a statement on Monday, the company said downstream marketers reacted directly to its revised ex-depot prices, and that the tariff policy did not influence the decision.
“We lowered our PMS gantry price from N877 to N828 per litre, and our coastal price from N854 to N806. The downstream marketers adjusted their prices accordingly. This move was strictly market-driven and not connected to the tariff reversal,” the refinery stated.
Refinery Capacity & Strategic Significance
Since starting production, Dangote Refinery has significantly reshaped Nigeria’s fuel market. With a nameplate capacity of 650,000 barrels per day (bpd), it has become a major force in reducing Nigeria’s dependence on imported petrol.
The refinery is in the process of upgrading: Dangote recently announced plans to raise capacity from 650,000 bpd to 700,000 bpd, and is also working on a longer‑term expansion to 1.4 million bpd. This expected scale-up would make it one of the largest single-site refineries globally.
Why the Price Cut Matters
Historically, petrol pricing in Nigeria has been highly exposed to global factors, international crude prices, freight costs, foreign-exchange swings, and import duties. By cutting its own ex-depot price, Dangote is asserting more control over the domestic price structure, reducing volatility tied to imports.
Energy economist Dr. Musa Halilu told Pointblanknews.com:
“Dangote’s price cut is a landmark event. For the first time in decades, the pricing power in Nigeria’s fuel market is shifting from international dynamics to local production.”
A refinery executive (who requested not to be named) added that the November 6 adjustment is part of a longer-term plan to stabilise supply and build market trust:
“We’re not just lowering prices. We are building confidence in Nigeria’s refining capacity. Every adjustment is carefully made to balance sustainability for us and affordability for consumers.”
Market Impact
The price review immediately reset the industry pricing floor. Within 24 hours, several major marketers reduced their pump prices, a response that analysts describe as “pure market competition.”
Oil sector analyst Grace Onuoha said:
“Dangote effectively forced a realignment. Marketers naturally had to follow to stay competitive. This isn’t about policy shifts, it’s market dynamics.”
Countering the Tariff Narrative
Dangote’s statement is a direct rebuttal to widespread speculation that the 15% import tariff reversal triggered the pump price drop. The company insists its price cut came first and was the real catalyst. The temporary tariff waiver only applies to imported PMS, while Dangote’s product is refined locally.
Boosting Fuel Security
By leveraging its own refining capacity, Dangote says it is helping to shield Nigeria from global supply disruptions and foreign-exchange risks. The refinery frames its pricing policy as part of a broader strategy toward energy self-sufficiency.
“As more Nigeria households and businesses rely on locally refined fuel, the nation becomes less vulnerable to international shocks,” the company said in its statement.
Energy analyst Dr. Tunde Aluko agrees: “This is what Nigeria has needed for decades, a domestic refinery with real capacity and market influence. Dangote is filling that crucial role.”
What This Means for Consumers
Many industry observers view the November 6 price cut as a turning point. For the first time, a local refiner, not global import dynamics, is visibly driving fuel prices in Nigeria.
Fuel station owner Uche Eze, who operates in Abuja, said, “This is a positive development. Local refining means more predictable prices, better supply, and a buffer against forex volatility.”