Nigerian filling stations have begun adjusting retail fuel prices following a recent reduction in the refinery gantry price by Dangote Refinery, though responses have been mixed and complicated by a reported suspension of its own sales.
On Tuesday, Dangote Refinery cut its petrol gantry price by N100 to N1,075 per litre, a move attributed to declining global crude oil prices. In immediate reaction, Ranoil and Sharon filling stations in Abuja reduced their pump prices by N20, selling at N1,330 per litre, down from N1,350.
However, other major retailers have not followed the downward trend. The Nigerian National Petroleum Company Limited (NNPCL) retail outlets, along with MRS and AA Rano, raised their prices to between N1,330 and N1,360 per litre by Tuesday evening, up from around N1,090 on Monday. These stations have yet to implement reductions aligned with the gantry cut. Diesel (Automotive Gas Oil) prices remained stable at N1,780 per litre across these outlets.
A manager at an MRS station in Abuja confirmed a price of N1,330 per litre but declined to comment on future adjustments. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PROPON), indicated that more filling stations may lower prices between now and Friday in response to the refinery’s gantry reduction.
A significant development may undermine this potential price pass-through. Reports suggest Dangote Refinery has suspended gantry petrol sales since Sunday. If sustained, this suspension could render Tuesday’s official price cut ineffective, as the lower gantry rate is not being applied to ongoing sales volumes.
The price adjustments follow a period of volatility. Dangote Refinery had increased its gantry price by N396 per litre over the previous ten days before the recent cut. The current reduction mirrors a broader decline in international crude markets, influenced by geopolitical signals from the United States.
The divergence in retail pricing highlights the complex interplay between refinery gate prices, individual station market strategies, and supply chain logistics. While the association predicts a downward adjustment across the sector, the suspension of sales at the country’s sole major refinery introduces considerable uncertainty. Consumers and retailers alike are watching for clarity on the availability of product at the new N1,075 gantry rate, which will determine the sustainability and extent of any further retail price reductions in the coming days. The situation underscores the delicate balance between refinery economics, import parity, and local pump prices in Nigeria’s downstream petroleum sector.
