Dangote Refinery has announced a reduction in the ex-depot price of Premium Motor Spirit, commonly known as petrol, lowering it from ₦950 to ₦890 per litre. The decision, which took effect on Saturday, February 1, 2025, follows a decline in global crude oil prices and a stabilizing international energy market. This move is expected to bring some relief to Nigerians, who have been grappling with high fuel costs that have contributed to inflation and increased living expenses across the country.
The price adjustment comes just weeks after Dangote Refinery increased fuel prices due to rising global crude oil costs. According to Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Refinery, the reduction aligns with global market trends and demonstrates the company’s commitment to transparency and fairness. He emphasized that this latest price cut is expected to significantly lower petrol costs nationwide, which will, in turn, reduce the prices of goods and services and help ease the overall cost of living.
The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has welcomed the price reduction and called on fuel marketers across the country to adjust pump prices accordingly to ensure that consumers benefit from the downward revision. However, PETROAN’s National President, Billy Gillis-Harry, noted that immediate reductions at filling stations may not be feasible in all cases, as some retailers still have old stock purchased at higher rates. He explained that many filling stations stocked up on petrol when the price was at ₦950 per litre, making an instant reduction at the pump challenging. Despite this, he encouraged all marketers who will be purchasing fuel at the new ex-depot price to pass on the benefits to consumers as soon as possible.
This reduction in petrol prices is expected to have far-reaching effects on the Nigerian economy. With transportation costs being a major factor in determining the prices of goods and services, the expectation is that this move will contribute to a general reduction in inflation. Businesses and households alike have been burdened by the high cost of fuel, which has led to increased costs of production and services. Many experts believe that this price cut, if effectively implemented across the country, could bring much-needed relief to millions of Nigerians struggling with rising costs of living.
The decision by Dangote Refinery to reduce fuel prices is part of a broader strategy to ensure energy security and affordability in Nigeria. The refinery, which has positioned itself as a major player in the country’s oil and gas industry, continues to align with the federal government’s long-term economic vision. President Bola Ahmed Tinubu has repeatedly emphasized the need for Nigeria to become self-sufficient in refined petroleum products and to establish itself as a leading oil export hub in Africa. With the country still relying heavily on fuel imports despite being an oil-producing nation, the Dangote Refinery has become a critical factor in the government’s plan to reduce dependence on foreign refineries and strengthen domestic refining capacity.
In recent months, fuel price adjustments by Dangote Refinery have been closely monitored by consumers and industry experts. The latest reduction comes after a series of fluctuations in the price of petrol, which have been influenced by global crude oil prices. In December 2024, the refinery reduced the price of petrol by 7.5 percent, bringing it down to ₦899.50 per litre. However, due to a surge in crude oil prices, the cost of petrol was increased again in January 2025 to ₦955 per litre. With crude oil prices now stabilizing, the refinery has responded by bringing the price down to ₦890 per litre, reflecting the changes in the global energy market.
The impact of this price cut will largely depend on how quickly fuel marketers comply with the new rates and how effectively regulatory bodies oversee the implementation. While some marketers may hesitate to reduce prices immediately due to existing stock, the expectation is that prices at the pump will eventually reflect the reduction in the coming days. The federal government, through its regulatory agencies, is expected to closely monitor the situation to ensure that consumers benefit from the adjustment.
As Nigeria continues to navigate economic challenges, policies and business decisions that influence the cost of essential commodities such as petrol remain critical. The country’s dependence on imported fuel has long been a source of economic strain, with fluctuating exchange rates and international oil prices significantly impacting local prices. The entry of Dangote Refinery into the market was widely seen as a game-changer, and developments such as this price reduction indicate the potential benefits of increasing local refining capacity.
The coming weeks will determine how effectively this price adjustment translates into real relief for Nigerian consumers. Many are hopeful that as more fuel marketers adopt the new pricing, the effects will be felt across various sectors, leading to reduced transportation costs, lower prices for goods and services, and an overall improvement in economic conditions. However, there remains a need for continuous oversight and collaboration among all stakeholders to ensure that the benefits of this reduction are not eroded by supply chain inefficiencies or price manipulations at the retail level.
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