The Digest:
Dangote Petroleum Refinery has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS) from N799 to N774 per litre, effective immediately. According to a notice to marketers and industry reports, the price adjustment reflects a recalibration amid shifting market dynamics. The refinery also concurrently ended its PMS lifting incentive, a volume-based bonus for marketers. Analysts, cited in reports, view the combined move as a shift toward a more stable pricing framework as the refinery strengthens its position in Nigeria's domestic fuel market.
Key Points:
- The price cut offers direct, though modest, relief to consumers at fuel stations if fully passed through.
- It signals potential easing of cost pressures in the downstream sector, contributing to price stability.
- Marketers lose a volume-based financial incentive but benefit from a lower base purchase price.
- The move demonstrates the refinery's growing influence in setting benchmark prices for Nigeria's fuel market.
- The timing aligns with efforts to stabilize the market in 2026 after the volatility following full subsidy removal.
