Nationwide petrol price drop looms as Dangote Refinery slashes ex-depot rates again

Petroleum marketers and retailers across Nigeria are bracing for a nationwide drop in the retail price of petrol, following the latest downward review of the ex-depot price of premium motor spirit (PMS) by Dangote Refinery on Monday.

The move, industry stakeholders say, is expected to trigger widespread adjustments at filling stations across the country in the coming days.

According to reports, the 650,000 barrels per day Dangote Refinery—located in the Lekki Free Zone, Lagos—has initiated a ₦10 refund per litre on PMS sold at ₦835/litre, effectively bringing down the ex-depot rate.

This change was confirmed by James Tor, National Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), and Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), in separate interviews on Monday.

The latest price slash is expected to reflect at pumps operated by major downstream marketers in partnership with Dangote Refinery—including MRS, Ardova (AP), Heyden, Optima Energy, Hyde, and Techno Oil.

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As of Monday evening, these outlets were retailing petrol at around ₦910/litre, but a review is already in motion.

“We would start selling our petrol at a new price of ₦900 per litre between Wednesday and Thursday,” the staff member disclosed.

Sources within the Nigerian National Petroleum Company Limited (NNPCL), which has renewed its naira-for-crude deal with the Dangote Group, hinted that NNPCL may also drop its petrol prices to between ₦880 and ₦900/litre soon to stay competitive.

Efforts to reach Anthony Chiejiena, spokesperson for Dangote Group, for official comment were unsuccessful at the time of this report.

The latest adjustment represents at least the third petrol price reduction by Dangote Refinery since the Federal Government renewed its naira-for-crude oil supply agreement with the privately-owned refinery on April 9, 2025.

The latest pricing has reportedly brought the rate down again to ₦825/litre, including the new refund mechanism.

Reacting to the development, IPMAN’s James Tor noted that such reductions are now commonplace in a fully deregulated market.

“Our members are used to price reductions. This is because the prices of premium motor spirits are determined by market forces since we have accepted deregulation of the sector,” he explained.

He emphasized that any change in Dangote’s pricing would naturally influence prices across other supply channels like NNPCL, NIPCO, and others.

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PETROAN President Gillis-Harry, while welcoming the collaboration between NNPCL and Dangote Refinery, expressed concern over the frequent fluctuations in petrol prices, warning that the trend could undermine market stability.

“The constant up-and-down movement of petrol prices really needs to be paid attention to. The stability of the industry is based on consistent prices,” he said.

“Certainly, there will be a change in the prices of PMS across the board. But this is artificial. That is the challenge. We should allow the market forces to determine prices.”

Gillis-Harry acknowledged the possibility that Dangote’s aggressive pricing strategy could be aimed at capturing significant market share, driven by its vast refining capacity and capital investments.

Despite his reservations, he maintained that PETROAN supports any initiative that boosts access to energy and strengthens Nigeria’s petroleum sector, particularly partnerships that help stabilize supply chains.

The refinery’s latest price movement coincides with a dip in global crude oil prices. As of early Tuesday morning, the price of Brent crude had fallen to $64.72 per barrel, while West Texas Intermediate (WTI) traded at $61.72, according to Oilprice.com. Lower global crude prices typically reduce the cost of refined products like petrol.

Last week, Dangote Group President Aliko Dangote and his team met with the new NNPCL management led by Bayo Ojulari, further solidifying collaboration between Nigeria’s largest private refinery and the state oil firm.

With more filling stations expected to implement price cuts this week, the full impact of the refinery’s pricing strategy on national pump prices will become clearer in the coming days.