Nigeria's largest private refinery, Dangote Petroleum, has resumed full-scale bulk sales of premium motor spirit (PMS) at a revised gantry fee of N877 per litre—a 7% jump from N820—sparking a fresh price skirmish that could force depots to slash rates or lose ground to the behemoth's volume discounts.

The adjustment, effective Thursday, offers a sweeter deal for big buyers snapping up two million litres or more, undercutting rivals' depot prices hovering at N885 to N900 per litre.

Vanguard Newspaper reports that Pinnacle charges N890, Rainoil N885, Optima N880 and Matrix N890, per Petroleumprice.ng data, leaving smaller players scrambling as filling stations pump at over N900 amid consumer grumbles.

Olatide Jeremiah, CEO of the price-tracking firm, sees ripples ahead: "The downstream sector continues to witness the price war. With its huge size and capacity, the 650,000 barrels per day refinery continues to determine the pace. Depot owners and others have to follow. So, we expect depot prices to reduce in the coming weeks. We also hope that the expected low prices will be extended to the filling stations nationwide."

The move caps a turbulent year for Dangote, Africa's refining giant, which fired up in early 2025 amid naira woes and import lobbies.

Bulk resumption signals stability after maintenance halts, but the hike—tied to rising crude costs and logistics—tests its pledge to ease pump prices. Mazi Obasi, president of the Oil and Gas Service Providers Association of Nigeria, lauded the milestone: "The management and staff of Dangote Refinery should be commended... It represents a significant milestone in Nigeria’s quest for energy independence and economic stability."

Depot operators, caught in the squeeze, face slimmer margins unless they match the gantry rate, potentially passing costs to retailers and drivers. As Nigeria's fuel subsidy saga lingers, the refinery's pivot could shave a few kobo off queues—or ignite fiercer turf wars in a market where one player's gain is another's pain.