Dangote Refinery has reduced the gantry price of Premium Motor Spirit (PMS) by N25 per litre.

This means the ex-depot rate dropped from N799 to N774 per litre.

The reduction was contained in a notice issued by the Group Commercial Operations Department, Dangote Petroleum Refinery and Petrochemicals FZE, to marketers. It said the move is with immediate effect.

“This is to notify you of a change in our PMS gantry price from N799 per litre to N774 per litre,” the notice read.

The refinery told marketers that its PMS lifting incentive had ended. The adjustment is expected to strengthen the competitiveness of locally refined products.

Tuesday’s reduction in ex-depot price is the latest in the adjustment of the cost of the essential commodity, which observers said is mostly driven by the exchange rate and global crude oil prices, among others.

Last year, the ex-depot cost of the commodity moved largely between N700 and over N800 per litre, affecting the pump price of PMS.

The 650,000-barrel-a-day Dangote refinery, Africa’s largest, began delivering petrol in 2024.

In January of that year, the refinery built by Nigerian billionaire Aliko Dangote began producing diesel and aviation fuel.

Nigeria swaps crude worth billions of dollars for petrol that it subsidised for years to maintain low domestic prices.

Fuel imports and subsidies have caused a massive drain on foreign exchange reserves at a time when Nigeria is struggling with dwindling oil revenues and foreign currency shortages.

Since coming to office in May 2023, President Bola Tinubu has ended long-standing fuel subsidies and floated the naira currency in economic reforms he says will attract foreign investment and build long-term growth.

But in the short term, fuel prices have doubled, and inflation hit a three-decade high of 34 percent in June 2024.