By Peace Erewunmi

Dangote Petroleum Refinery has announced another reduction in the ex-depot prices of Premium Motor Spirit (PMS), popularly known as petrol, and Automotive Gas Oil (AGO), commonly referred to as diesel, in a move expected to ease fuel costs and intensify competition in Nigeria’s downstream petroleum sector.

Under the new pricing structure, the refinery reduced the ex-depot price of petrol by ₦50 per litre, from ₦1,215 to ₦1,165 per litre. Diesel was also reduced by ₦80 per litre, with the price dropping from ₦1,650 to ₦1,570 per litre. The revised prices took effect on August 6, 2026.

Industry analysts say the latest price adjustment is expected to trigger further competition among fuel depots and marketers, many of whom are already reviewing their prices to remain competitive. They also believe the reduction could eventually translate into lower pump prices for motorists as marketers begin to lift products at the new rates.

The refinery’s latest move comes amid efforts to stabilise the domestic petroleum market and improve the affordability of refined petroleum products. If the reduction is reflected at filling stations nationwide, it could help reduce transportation costs and provide some relief to businesses and households grappling with high operating expenses.

Market observers expect more depots and fuel marketers to adjust their prices in the coming days as fresh supplies purchased at the new ex-depot rates enter the distribution chain, further strengthening competition in the downstream oil sector.