The Dangote Petroleum Refinery resumed full operations on Thursday, simultaneously raising the gantry price of Premium Motor Spirit, commonly known as petrol, by seven per cent, from ₦820 per litre to ₦877 per litre.

According to Vanguard, oil marketers who purchase large volumes of two million litres and above would benefit from this relatively low price point.

Despite the increase, the refinery’s gantry price remains significantly lower than the ₦890 – ₦900 per litre depot price currently charged by many depot owners across the country.

Data released by Petroleumprice.ng showed that independent depot owners such as Pinnacle and Rainoil were listing their depot prices at ₦890 and ₦885 per litre, respectively.

Other players, Optima and Matrix, were also pricing their depot products at ₦880 and ₦890 per litre, respectively, confirming the Dangote Refinery’s price advantage.

Olatide Jeremiah, the Chief Executive Officer of Petroleumprice.ng, commented on the emerging market dynamics, stating: “The downstream sector continues to witness the price war. With its huge size and capacity, the 650,000 barrels per day refinery continues to determine the pace. Depot owners and others have to follow. So, we expect depot prices to reduce in the coming weeks. We also hope that the expected low prices will be extended to the filling stations nationwide.”

Despite the refinery’s lower price, Vanguard reported that many filling stations were still retailing the product in excess of ₦900 per litre as of yesterday.

The President of the Oil and Gas Service Providers Association of Nigeria, Mazi Obasi, commended the refinery’s success.

He stated: “The management and staff of Dangote Refinery should be commended for the successful commencement of operations and their resilience in overcoming various economic and operational challenges posed by saboteurs within the oil and gas value chain.”

Obasi emphasized the strategic national importance of the facility, asserting that the establishment and success of the Dangote Refinery “represent a significant milestone in Nigeria’s quest for energy independence and economic stability.”

He further assured that OGSPAN is fully committed to partnering with the refinery in advocacy and public enlightenment efforts aimed at educating Nigerians on the immense benefits of local refining to the national economy, job creation, and foreign exchange stability.