Dangote Slashes Petrol and Diesel Prices as Waterborne Exports Surge

Dangote Petroleum Refinery has announced a significant reduction in the prices of both Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO).

The move, effective March 11, 2026, is designed to align domestic fuel costs with the recent decline in global crude oil benchmarks and to support economic stability across Nigeria.

This pricing relief comes as the refinery ramps up its “coastal export” operations, utilizing sea routes to deliver massive volumes of gasoline back into the Nigerian market and neighboring Togo.

The New Pricing Framework: March 2026

The refinery has cut prices by up to ₦190 per litre, a move that management describes as a reflection of their commitment to transparency and ethical governance.

• Global Benchmarking: The refinery clarified that it continues to purchase crude at global benchmarks plus a $3 to $6 premium. Despite the “Naira-for-Crude” arrangement, prices are still converted using prevailing market exchange rates with zero subsidies.

• Cost-Plus Logic: As global oil prices cooled slightly this week, the refinery has passed these savings directly to the gantry (ex-depot) price to ease the burden on Nigerian consumers.

Waterborne Strategy: The “Lekki-to-Lagos” Bridge

Data from S&P Global Commodities at Sea (CAS) reveals that the refinery is increasingly bypassing road bottlenecks by using waterborne vessels to move gasoline.

• Export Volume: Since February 24, 2026, the refinery has exported six cargoes of gasoline totaling 275,880 metric tons.

• Domestic Focus: Five of these six cargoes were discharged back into the Nigerian market (Lagos/offshore), acting as a “floating storage” system to ensure steady supply to major depots.

• Regional Expansion: On March 9, a 24,360-mt cargo successfully landed in Lome, Togo, marking the refinery’s growing footprint as the primary fuel hub for West Africa.

Market Dynamics: FOB Lekki Jumps

Despite the domestic price cut, the FOB (Free on Board) Lekki gasoline price has seen a significant jump. This suggests that international buyers are willing to pay a premium for Dangote’s high-quality, low-sulphur output.

• Quality Alpha: The refinery’s ability to produce Euro-V grade fuels makes it a preferred supplier for international traders who then re-route the product to premium markets.

• Utilization Rates: Local regulatory authorities confirm that utilization rates at the 650,000 bpd plant are increasing as the secondary units stabilize, allowing for simultaneous domestic supply and regional exports.

Get More of our proprietary news and analysis as MoneyCentral is now on WhatsApp Channels  Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!