The Dangote Petroleum Refinery has reduced the gantry price of its Premium Motor Spirit, also known as petrol, to ₦828 per litre from ₦877 per litre, indicating a significant decrease of 5.6 per cent.

This price reduction was implemented despite an increase in crude oil prices, which averaged $64 per barrel on Thursday, up from $62 per barrel the previous day.

The drop in prices was attributed to a newly strengthened crude supply arrangement between Dangote Refinery and NNPC Limited under the naira-for-crude framework.

Vanguard reported that NNPC Ltd will supply the 650,000-barrels-per-day refinery with five December-loading crude shipments, including Amenam, Bonny Light, Forcados, and Qua Iboe.

The immediate effect of this reduction on the market was detailed by Petroleumprice.ng, which stated: “The price adjustment is expected to bring some relief to fuel marketers and consumers nationwide, following weeks of elevated pump prices. Depot operators in Lagos confirmed that loading at the new price commenced early Friday, with expectations of a corresponding drop at retail outlets in the coming days.”

The current gantry price remains below import parity, according to a report by S&P Global Commodity Insights presented at the Major Energy Marketers Association of Nigeria conference in Lagos on Thursday.

That report noted that Dangote’s gantry price stood at ₦877 per litre as of October 17, 2025, placing it below the average “into-tank” cost of imported fuel in Lagos and the ship-to-ship value at Lome, Togo.

It further noted that this pricing gap underscores Dangote’s cost advantage in the domestic market, even amidst fluctuations in international crude prices due to factors like sanctions on Russian oil producers and weak global demand.

The S&P Global report also indicates a broader industry change, showing that the nation’s fuel imports have now fallen below 200,000 barrels per day, down from approximately 500,000 barrels per day in early 2023.

The report highlighted operational challenges in Nigeria’s domestic refineries, noting that the country’s downstream transition is marked by deregulated pricing, declining imports, and the addition of new refining capacity.

Despite these developments, S&P Global warned that strong regulatory oversight remains crucial to ensure market transparency, fair competition, and consumer protection in a liberalised environment.