Dangote refinery lowers petrol price to N1,200

By Matthew Dennis

Dangote Refinery has reduced its ex-depot price of petrol to N1,200 per litre, in a move expected to ease fuel costs and intensify competition in Nigeria’s downstream sector.

The new pricing, announced on Thursday, represents a drop of N85 from the previous rate of N1,285 per litre, marking a 6.6 percent decrease. Industry players say the adjustment is aimed at aligning with prevailing market conditions and competing with private depot owners.

Depot prices had recently hovered between N1,240 and N1,255 per litre, putting pressure on the refinery to review its pricing strategy.

The reduction follows a slight decline in global crude oil prices earlier in the week, with benchmark Brent crude and West Texas Intermediate trading lower before stabilising. Analysts say the shift in global prices has influenced domestic fuel pricing expectations.

Market observers say the latest adjustment could translate into a reduction in pump prices by N50 to N70 per litre, depending on distribution costs and retail margins. This could see petrol prices at filling stations fall to around N1,290 to N1,310 per litre in the coming days.

Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, said marketers would respond to the new pricing. “Our members will have to adjust to a new retail price,” he said.

However, some retailers said they were awaiting updated pricing templates from their head offices before implementing any changes.
Fuel prices in Nigeria have remained volatile in recent weeks, driven in part by global supply disruptions linked to geopolitical tensions involving Iran, the United States and Israel. Prices rose sharply earlier in March, reaching as high as N1,370 per litre in Abuja.

The Refinery has adjusted its petrol prices several times this year, reflecting shifts in both global oil markets and domestic supply dynamics.