In a development that signals a potential turning point in Nigeria’s fuel pricing, Dangote Petroleum Refinery has cut the price of Premium Motor Spirit (PMS) from N880 to N865 per litre. The move comes shortly after the Federal Government reaffirmed its commitment to the naira-for-crude exchange framework.
The announcement was made following a technical committee meeting held earlier in the week, where the government reiterated that the six-month pilot phase of the initiative had not been scrapped, but rather paused for review. Committee Chairman and Finance Minister, Wale Edun, clarified that the policy remains intact, aligning with broader economic goals to boost local refining, conserve foreign exchange, and stabilize pump prices.
The naira-for-crude mechanism, endorsed by the Federal Executive Council (FEC), is designed to empower local refiners such as NNPC and Dangote by allowing them to source crude oil in local currency, thereby easing Nigeria’s reliance on fuel imports and volatile forex markets.
Industry players have welcomed the price cut. Abubakar Shettima, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the association had long championed the naira-for-crude deal. “Now that it’s taking shape, the drop in PMS prices is a clear benefit to consumers,” he noted, adding that members would reflect the changes at retail stations soon.
Olufemi Adewole, Executive Secretary of DAPPMAN, also hailed the move, citing favorable global crude trends and the potential for long-term stability. However, he reiterated concerns over reduced forex inflows from oil exports.
Still, the consensus is clear: this strategic shift could ease consumer burden and offer much-needed relief in the domestic petroleum market.
