Dangote refinery has reduced the ex-depot price of premium motor spirit (petrol) from N890 to N825 per litre, a N65 per litre cut, in a move aimed at easing the financial burden on Nigerians, particularly in anticipation of the Ramadan season.

This strategic price adjustment is intended to support President Bola Ahmed Tinubu's economic recovery initiatives, according to the company. The price cut follows an earlier N60 per litre reduction on February 1, marking the second price cut in February.

Since beginning production in 2024, the Dangote refinery has played a significant role in addressing fuel scarcity in Africa's most populous country. The refinery's production capacity has helped to reduce Nigeria's reliance on imported fuel, providing a more stable and affordable supply of petrol to the local market.

While the price cut has been welcomed by consumers, petrol importers have raised concerns about potential financial losses. They estimate that they may lose an average of N2.5bn daily and N75bn monthly following the latest PMS price reduction.

Despite the concerns from importers, many Nigerians are taking advantage of the lower prices. Consumers have been patronizing Dangote partner stations, which offer cheaper petrol. Some of the fuel stations where Dangote fuel is available at discounted prices include MRS, AP (Ardova Petroleum), and Heyden Petroleum.

At MRS stations, Dangote petrol is available at N860 per litre in Lagos, N870 in the South-West, N880 per litre in the North, and N890 per litre in the South-South and South-East. Similarly, Ardova Petroleum offers Dangote petrol at N865 per litre in Lagos, N875 in the South-West, N885 per litre in the North, and N895 per litre in the South-South and South-East. Heyden Petroleum, another distributor of Dangote petrol, offers fuel at N865 per litre in Lagos, N875 in the South-West, N885 per litre in the North, and N895 per litre in the South-South and South-East.

The price cut by Dangote refinery is expected to have a positive impact on the Nigerian economy, particularly in the lead-up to the Ramadan season. The move is seen as a strategic effort to support the government's economic recovery initiatives and provide relief to Nigerians who have been struggling with high fuel prices.

As the Nigerian economy continues to navigate the challenges of fuel scarcity and high prices, the Dangote refinery's price cut is a welcome development. The move is expected to have a ripple effect on the entire energy sector, with other players likely to follow suit in an effort to remain competitive.

In the long run, the Dangote refinery's price cut is expected to contribute to a more stable and affordable energy market in Nigeria. As the country continues to grapple with the challenges of fuel scarcity and high prices, the refinery's production capacity and strategic pricing decisions are likely to play a critical role in shaping the energy landscape.