On Saturday, February 1, 2025, Dangote Petroleum Refinery announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from ₦950 to ₦890 per liter. This decision, aimed at providing economic relief to Nigerians, was attributed to favorable developments in the global energy sector and a significant decline in international crude oil prices.

However, this price adjustment has significant implications for petroleum marketers who have recently imported fuel. Many of these marketers are now facing potential losses, as the landing cost of imported petrol currently stands at approximately ₦922.65 per liter, which is higher than Dangote Refinery's new ex-depot price.

The sudden price reduction by Dangote Refinery has been interpreted by some industry stakeholders as a strategic response to warnings that traders might resort to importation if foreign PMS remained cheaper than locally refined products. By lowering its ex-depot price, Dangote aims to remain competitive and discourage fuel importation.

In response to Dangote's price cut, the Nigerian National Petroleum Corporation (NNPC) is reportedly considering a reduction in its petrol prices to remain competitive. This development underscores the dynamic nature of Nigeria's petroleum market and the challenges faced by marketers in navigating price fluctuations.

These developments highlight the complex interplay between local refining capacities and imported fuel economics, presenting both opportunities and challenges for stakeholders in Nigeria's petroleum industry.