Dangote Refinery Slashes PMS Price & Begins Direct Supply: What Nigerians Need to Know

Dangote Refinery Operation to Slice down price and make direct supply

Starting September 15, 2025, the Dangote Petroleum Refinery launches a landmark move — distributing Premium Motor Spirit (PMS or petrol) directly to filling stations, while significantly cutting prices. The refinery says this action is set to reduce cost burdens on Nigerians, support small businesses, and ease inflationary pressure.

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Key Details

1. What’s Changing: Price and Supply

The gantry price (wholesale) has been reduced to ₦820 per litre. 

Retail (pump) prices will differ by state:

• Lagos & other South-West states: ₦841 per litre 

• Abuja, Rivers, Delta, Edo, and Kwara: ₦851 per litre 

2. Roll-Out Phases & Regions Covered First

Initial deployment includes: Federal Capital Territory (FCT), Lagos, Kwara, Delta, Edo, Rivers, and all South-West states. 

Nationwide expansion is planned, contingent on availability of more delivery trucks. 

3. Transport & Distribution Logistics

Dangote is adopting CNG-powered (compressed natural gas) trucks for fuel transportation. The goal: reduce cost of logistics and improve environmental footprint. 

This new transport method is projected to yield savings of over ₦1.8 trillion annually if fully implemented. 

4. Wider Benefits & Investments

More than ₦720 billion is being invested into the programme. 

It aims to help over 42 million micro, small & medium enterprises (MSMEs) by lowering their energy costs and boosting profit margins. 

Also expected: job creation for truck drivers, station managers, fuel attendants, plus revitalizing dormant filling stations. 

5. Call to Stakeholders

Dangote is inviting filling station operators nationwide to register for free delivery and other benefits. 

Other large fuel consumers and telecom companies are encouraged to partner in order to maximize economic impact. 

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Why This Matters

Lower fuel cost = relief for consumers: Fuel price is a major influencer of transport, food, and goods costs. Even modest reductions can help with household budgets, especially in major cities.

Support for MSMEs: Many small businesses are heavily impacted by high fuel & energy costs. This change could meaningfully improve their profitability and survival.

Inflationary effects: With fuel being such a core input, lower distribution / pump prices can help dampen inflation trends, particularly for commodities transported over land.

Environmental & operational efficiency: Moving to CNG-powered trucks could reduce fuel used in logistic supply chains and potentially reduce emissions.

Boost to local economy: Investment, jobs, and filling station activation all add to economic activity.

Possible Challenges / What to Watch Out For

Ensuring that savings at gantry level truly translate to lower pump prices for consumers (not absorbed by middlemen or increased margin somewhere else).

Scaling the infrastructure: sufficient number of CNG-powered trucks, CNG refilling stations, maintenance, reliability.

Geographic roll-out delays: some states will wait; logistical bottlenecks may slow things down.

Regulatory or administrative hurdles: licensing, registration of filling stations for direct delivery, oversight to ensure compliance.

Conclusion

Dangote Refinery’s move to reduce the price of PMS and directly supply filling stations is a notable step that could have wide-reaching benefits: cheaper fuel, lower inflation, stronger support for small business, more jobs. While success depends on efficient implementation and honest pass-through of savings, the potential upside for Nigerians is substantial. Stay tuned as this rolls out, especially in your state, to see when and how you’ll benefit.

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