Dangote Petroleum Refinery has lowered its ex-depot price for premium motor spirit (PMS), commonly known as petrol, to N820 per litre nationwide, a move set to take effect on Monday that could ease pump prices for consumers even as the facility grapples with an escalating dispute with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).

The 650,000-barrel-per-day refinery, Africa's largest single-train facility, announced the adjustment on Thursday, maintaining the N820 per litre gantry rate first set last month. Under the new template, prices for marketers in Lagos and the South-West drop by N19 per litre, while those in Abuja and the South-South see a N34 reduction. The change aligns with Dangote's ongoing efforts to stabilize fuel supply and pricing in a market still reliant on imports, promising consistent availability without shortages.

The announcement coincides with the launch of 4,000 compressed natural gas (CNG)-powered trucks for nationwide distribution starting September 15, a N720 billion initiative expected to save Nigerians over N1.7 trillion annually in logistics costs and revive dormant filling stations. More independent marketers, including TotalEnergies and others, have joined the network, expanding access to the refinery's products.

However, the price cut unfolds against a backdrop of labor unrest. NUPENG has accused refinery officials, including Aliko Dangote's cousin Sayyu Aliu Dantata, of breaching a government-brokered memorandum of understanding on union rights for CNG truck drivers. The union, which suspended a nationwide strike earlier this month after mediation, has placed members on red alert and threatened renewed action by September 15 if unresolved. The refinery denies the allegations, insisting union membership is voluntary and the CNG program creates over 60,000 jobs with enhanced benefits.