In a bold move to drive economic relief for Nigerians, Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N950 to N890 per liter, effective from Saturday. This price adjustment is in response to favorable developments in the global energy sector and a significant decline in international crude oil prices.

The refinery's decision reflects its commitment to aligning with market realities and ensuring that consumers benefit from changes in international crude oil prices. According to the Group's Chief Branding and Communications Officer, Anthony Chiejina, "Dangote refinery's decision reflects its commitment to aligning with market realities and ensuring that consumers benefit from changes in international crude oil prices."

This sudden price cut has sent shockwaves across the oil market, which currently averages around N970 to N990 as PMS price. Marketers told the Punch newspaper that the Dangote refinery's abrupt price cut was likely brought on by recent warnings that specific marketers were preparing to import PMS if the foreign product remained lower than the ex-depot pricing of locally refined goods.

In response, the Dangote refinery moved to proffer competitive rates. This, according to marketers, could present some challenges as well as opportunities. The Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, stated that marketers would need to be careful when purchasing products and have adequate information on market developments to avoid losses.

Fashola also noted that when prices fall, the only alternative for a marketer is to lower the price to liquidate old stockpiles, or he will be left with no buyers. "When this happens, the only option a marketer has is to bring down the price. Because if you don’t do that, the competition will set in," he stated.

The National President of the Petroleum Products Retail Outlet Owners Association in Nigeria relayed that this sort of move could improve the overall quality of life in Nigeria. "The reduction in PMS ex-depot price is expected to have a far-reaching impact on the lives of Nigerian citizens. With a decrease in the cost of petrol, the prices of goods and services are likely to decrease, leading to a reduction in the overall cost of living," he said.

The reduction in PMS price will also have a positive impact on the economy. A decrease in transportation costs will lead to increased economic activity, as businesses will be able to transport goods and services more efficiently and at a lower cost. Additionally, the reduction in PMS price will lead to an increase in demand for goods and services, which will have a positive impact on economic growth and development.

This move by Dangote Refinery is expected to have a significant impact on the cost of living in Nigeria, providing relief to households who will have more disposable income to allocate towards other essential needs. As the National President of the Petroleum Products Retail Outlet Owners Association in Nigeria stated, "The reduction in PMS price will also have a positive impact on the economy."

With this bold step, Dangote Refinery has demonstrated its commitment to aligning with market realities and ensuring that consumers benefit from changes in international crude oil prices. The impact of this move will be closely monitored, and its effects on the cost of living in Nigeria will be a significant area of focus in the coming weeks and months.