Again: Dangote refinery reduces fuel price

DDM News

Dangote Refinery has reduced its ex-depot price for premium motor spirit (PMS) to N815 per litre.

Diaspora digital media (DDM) gathered that this adjustment follows a drop in fuel landing costs to N774.82 per litre, below the refinery’s previous N825 per litre rate.

Petroleum marketers familiar with the development confirmed the price reduction on Friday.

Unlike the previous price cut on February 26, 2025, Dangote Refinery has not issued an official announcement regarding this adjustment.

The price reduction comes as a response to increasing competition in Nigeria’s downstream oil sector.

Marketers react to the price reduction

A spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed the price adjustment.

He linked the reduction to a competitive market environment and the impact of deregulation in the petroleum industry.

“It is true. There is speculation that the price of imported products is now lower,” Ukadike stated.

“That is the reason for the price war among industry players,” he added.

“It is the beauty of deregulation. Dangote has millions of litres and would not want any external force to take its market share,” he explained.

“So, the company would have been forced to reduce its prices,” he concluded.

Uncertainty over retail fuel prices

Despite the ex-depot price reduction, it remains unclear whether this will translate into lower retail prices at filling stations.

Fuel stations supplied by Dangote Refinery, such as MRS, currently sell petrol at N860 per litre in Lagos.

In Abuja, the price remains higher at N880 per litre, despite the refinery’s new ex-depot rate.

Consumers and industry stakeholders are closely monitoring whether the price adjustment will reflect at the retail level.

Ongoing market competition

For several months, Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) have engaged in a fuel price battle.

Each entity has adjusted its prices in a bid to control a larger share of the market.

This price war has led to uncertainty among independent fuel retailers and consumers across Nigeria.

Calls for price stability

The Petroleum Products Retail Outlet Owners Association (PETROAN) has called for more stable fuel pricing.

Recently, PETROAN representatives met with the Minister of State for Petroleum, Heineken Lokpobiri, to discuss pricing challenges.

They urged the government to ensure fair competition and price stability in the petroleum sector.

Dangote Refinery is a 650,000 barrels per day (bpd) crude oil processing facility located in Lekki, Lagos, Nigeria.

It is the largest single-train refinery in the world and was officially commissioned in May 2023.

The refinery aims to reduce Nigeria’s reliance on imported petroleum products by refining crude oil locally.

It also seeks to stabilize fuel supply and pricing while positioning Nigeria as a key player in Africa’s petroleum market.

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