(DDM) – The Dangote Refinery has triggered a fresh wave of reactions across Nigeria’s petroleum sector after announcing a sharp reduction in its ex-depot petrol price, a move analysts describe as one of the most competitive cuts seen in the industry this year.
The latest adjustment, confirmed on Friday, December 12, 2025, in Lagos State, sets the new ex-depot price at N699 per litre, marking a steep drop from the previous N828 per litre.
DDM notes that the new price represents a reduction of N129, amounting to 15.58 percent, and comes at a time when fuel consumption typically increases due to the approaching Yuletide season.
The development was first noticed during an early-morning review on Petroleumpriceng, an online platform that tracks fuel price adjustments nationwide.
The drop immediately sparked conversations within the industry, as this marks roughly the twentieth price review carried out by Dangote Refinery since the beginning of the year.
Industry insiders say the refinery appears determined to gain a stronger foothold in the market by significantly undercutting competitors, especially the Nigerian National Petroleum Company Limited.
The NNPC and various private filling stations had recently announced at least two reductions within three weeks, bringing the retail pump price in Abuja to between N915 and N937 per litre.
Analysts believe Dangote’s latest move is strategically positioned to pressure NNPC’s pricing model and potentially force another nationwide adjustment.
They note that the reduction may have been timed deliberately to attract more marketers ahead of Christmas and New Year festivities.
Observers say the competitive action represents the clearest sign yet that the downstream market is entering a new era of aggressive price positioning.
Economic experts warn that while the price slash may offer temporary relief to struggling Nigerians, it also signals the likelihood of further instability in the pricing structure, especially as global crude costs fluctuate.
Many Nigerians, however, welcomed the news with cautious optimism.
Motorists who spoke to DDM reporters described the reduction as a “positive surprise,” though they expressed fears that the price may rise again without warning.
Fuel marketers are also expected to react quickly, as they adjust their supply strategies to reflect Dangote’s influence on the market.
Some players noted that if the trend continues, consumers might witness more competitive pricing throughout December.
Background checks show that the Dangote Refinery, Africa’s largest single-train refinery, has been under intense pressure to stabilize its supply network since it began releasing products into the domestic market earlier in the year.
The refinery’s pricing strategy has fluctuated repeatedly due to operational adjustments, international import parity concerns, and competition from government-linked distributors.
With the latest reduction, experts say Nigerians may experience a slightly calmer festive season compared to the steep petrol price spikes recorded in previous years.
Still, the long-term stability of fuel pricing remains uncertain as market forces continue to evolve.
