The announcement by Dangote Petroleum Refinery to reduce the price of Premium Motor Spirit (PMS) to ₦899.50 per litre has been received with mixed reactions across Nigeria. This decision, described as a holiday relief measure, comes at a time when the country has been grappling with the economic impact of the removal of fuel subsidies earlier this year.
While some see the reduction as a step towards alleviating the financial burden on citizens, others argue it barely scratches the surface of the larger issue surrounding fuel pricing and its ripple effects on the economy.
The removal of fuel subsidies by the Nigerian government marked a significant shift in the nation’s energy policy. It was implemented to address years of inefficiency and corruption associated with the subsidy regime, which had cost the government trillions of naira.
However, the immediate consequence was a sharp increase in the price of fuel, which skyrocketed from an average of ₦197 per litre to over ₦500 and eventually to more than ₦900 in some regions. This drastic hike left Nigerians facing higher transportation costs, increased prices for goods and services, and a general rise in the cost of living.

In response to the challenges posed by these changes, Dangote Refinery’s reduction in fuel prices has been positioned as a measure to bring some relief to Nigerians during the festive season. By lowering the price from ₦970 to ₦899.50, the refinery aims to ease transport costs and make fuel slightly more affordable.
The effects of the subsidy removal have been deeply felt across the country, especially among low- and middle-income earners. With fuel prices becoming significantly higher, the cost of transportation has surged, leading to increased prices for essential commodities. Small business owners, dependent on fuel for generators due to Nigeria’s unreliable electricity supply, have also found themselves struggling to keep operations afloat. The ripple effect has exacerbated economic hardships for millions, making the reduction announced by Dangote Refinery feel like a small drop in an ocean of challenges.
The promise of Dangote Refinery to provide competitively priced, environmentally friendly, and high-quality petroleum products resonates with the broader vision of reducing Nigeria’s reliance on imported fuel. For decades, Nigeria, despite being one of the world’s largest oil producers, has relied heavily on imported petroleum products due to its inability to refine crude oil locally. This reliance has made the country vulnerable to price fluctuations in the global oil market and has contributed to its economic instability. The operations of the Dangote Refinery, with a capacity to meet 100% of Nigeria’s refined petroleum needs and even export surplus, represent a significant step toward achieving energy self-sufficiency.

While the refinery’s price reduction is commendable, critics argue that more sustainable solutions are needed to address the underlying issues. The high cost of fuel remains a significant barrier to economic growth and development in Nigeria. Many have called on the government to create a comprehensive strategy that includes the improvement of public transportation systems, investment in renewable energy, and support for local refining capacity. Without these measures, short-term price reductions may provide only temporary relief, leaving the deeper structural issues unaddressed.
As the festive season approaches, the reduction in fuel prices is expected to offer some respite to Nigerians, particularly those traveling to spend time with loved ones. However, the question remains whether such measures can significantly ease the burden of high fuel prices in a country still grappling with economic uncertainty. While Dangote Refinery has emphasized its commitment to ensuring Nigerians have access to premium quality petroleum products, the onus also lies on the government to create an enabling environment that supports affordability and stability in the energy sector.

The decision to remove fuel subsidies, though necessary in the long run, has placed a significant strain on ordinary Nigerians. The path toward economic recovery and energy security will require a delicate balance between addressing immediate needs and implementing long-term solutions. Dangote Refinery’s price reduction is a reminder of the role private sector initiatives can play in cushioning economic shocks. However, it also highlights the need for a coordinated effort between the government, private sector, and civil society to ensure that the transition to a market-driven energy sector benefits all Nigerians.
In conclusion, while the reduction of PMS prices to ₦899.50 per litre by Dangote Refinery has been welcomed as a timely relief, it underscores the complexities of Nigeria’s energy landscape. The removal of fuel subsidies has revealed the vulnerabilities in the system and the urgent need for reforms that go beyond short-term fixes.
As Nigerians navigate the challenges of high fuel costs and their associated impacts, the hope remains that initiatives like this, combined with strategic government policies, will pave the way for a more stable and prosperous future.
Thank you for reading this piece. We hope you’re inspired by it because your subscription goes a long way. It might interest you to know that we organise workshops and seminars to empower young people. Partner with us today! Find other related articles on our website and follow us on Instagram @InsideSuccessNigeria for more updates.