Dangote Refinery’s Latest Move: Petrol Price Reduced to N815/Litre for Third Time This Year

Dangote Refinery has taken a significant step in the downstream oil sector by lowering the loading cost of petrol from N825 to N815 per litre. This marks the third price reduction in 2025, following similar adjustments on February 1 and February 26.

This latest price cut has been well received by oil marketers, who are now opting to source their products directly from the refinery instead of relying on private depot owners. The N10 reduction is expected to trigger a competitive response from private fuel depots, which may be compelled to lower their prices to retain market share.

Market Reactions and Pricing Adjustments

The landing cost of imported petrol in Nigeria fell to N774.72 per litre earlier this week, prompting industry analysts to suggest that pump prices could drop to around N800 per litre. This may have influenced Dangote Refinery’s decision to adjust its pricing.

As a result, depots in Lagos have begun modifying their rates to align with the refinery’s new price structure. Current selling prices range between N820 and N839 per litre, with depots such as AA RANO and MENJ selling at N830 per litre, while others like WOSBAB and RAINOIL have set their prices at N831 per litre.

Implications for the Downstream Sector

Dangote Refinery’s decision is expected to create a ripple effect across the industry. Many oil marketers anticipate further price reductions as competition intensifies. “We expect other depots to adjust their prices to stay competitive,” noted a marketer who preferred to remain anonymous.

This pricing strategy is widely seen as a calculated move to strengthen Dangote Refinery’s market position. With more attractive pricing, oil marketers are likely to shift their supply chains directly to the refinery, potentially disrupting the dominance of private depot operators.

A More Competitive Market for Consumers

Industry experts believe that this development could foster a more dynamic and competitive fuel market, ultimately benefiting consumers. Abiodun Adesanya, President of the Nigerian Association of Road Transport Owners (NARTO), noted that “the reduction in price by Dangote Refinery will lead to a reduction in the pump price of petrol, which will be a welcome relief to motorists and other consumers.”

As the market adjusts to these changes, the coming weeks will reveal whether additional price reductions will follow and how private depots will respond to this shift in the sector.