Another Win For Consumers: Dangote Refinery Slashes Petrol Price For Second Time

This change, which took effect on Thursday, is a significant development in the ongoing price competition in Nigeria’s downstream oil sector.

This latest price drop follows a ₦65 reduction in the price of Premium Motor Spirit (PMS), or petrol, announced two weeks ago. On February 27, 2025, the ex-depot price dropped from ₦890 to ₦825 per litre.

The new pricing, effective Thursday, has been met with enthusiasm from oil marketers, many of whom are now sourcing products directly from the Dangote refinery, bypassing other suppliers.

On Tuesday, reports confirmed that the landing cost of imported petrol had decreased to ₦774.72 per litre, with some marketers predicting that this trend could push pump prices down to around ₦800 per litre.

“The drop in crude oil prices, a major factor in fuel production, is likely to result in a decrease in petrol prices, possibly down to ₦800 per litre,” stated Chief Ukadike Chinedu, National Publicity Secretary of the Independent Marketers Association of Nigeria.

With Dangote Refinery’s latest reduction to ₦815 per litre at the loading gantry, the ₦10 levy by the Nigerian Midstream and Downstream Petroleum Regulatory Authority brings the cost of petrol to ₦825 per litre.

Chinedu Ukadike also noted that the price war is driven by market competition, with Dangote and other industry players fighting for control. He added, “Yes, the lower price of imported products is fueling this price war. It’s a key aspect of deregulation. Dangote, with its vast stock, would want to maintain its market share, which likely prompted the price reduction.”

An official from Dangote Refinery, who wished to remain anonymous, claimed not to be aware of the new price change but confirmed that oil marketers were correctly reporting the development.