Dangote Refinery Petrol Price Drop Sparks Hope for Cheaper Fuel Nationwide

Nigerians may soon enjoy relief at fuel stations as the Dangote refinery petrol price drop takes effect, following a decision by the refinery to resume selling petroleum products in naira and slash its ex-depot price to N865 per litre.

This move comes 22 days after Dangote Refinery suspended naira-based petrol sales, stirring widespread concern over fuel affordability and foreign exchange pressure.

The 650,000-barrel-per-day Lagos-based refinery has now cut its ex-gantry petrol price from N880 to N865, a reduction confirmed in a customer notice issued on Thursday, April 10, 2025.

Petroleum marketers stated that this development is expected to trigger lower pump prices across the country, especially among marketers with off-take agreements with Dangote, such as MRS Oil & Gas, Heyden, and Ardova Plc.

FG Reaffirms Naira-for-Crude Policy to Boost Local Refining

This price adjustment follows a renewed directive from the Federal Executive Council supporting the implementation of the Naira-for-Crude initiative, which mandates the sale of crude oil and refined products in naira to boost local refining and reduce foreign exchange demand.

In a statement posted on its official X (formerly Twitter) handle, the Federal Ministry of Finance reiterated that the policy is a long-term economic strategy, not a temporary fix.

It aims to stabilise fuel prices, enhance energy security, and support domestic refineries like Dangote’s.

Industry Reactions: Marketers Welcome Drop But Highlight Challenges

While the Dangote refinery petrol price drop has been welcomed as a step toward affordable fuel in Nigeria, petroleum marketers are navigating mixed emotions.

According to Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), some marketers who recently lifted petrol at the old rate now face losses.

“We’re relieved but it’s a mixed bag. Some of us are now selling at a loss, having lifted products earlier at N880. Still, this drop will enable more purchases and improve turnover,” Ukadike stated.

IPMAN Vice President, Hammed Fashola, described the policy return as “a good development” that will bring down petrol prices and stabilise the market, urging the government to sustain the initiative.

Analysts See Rising Competition, Possible Price Wars

Oil and gas expert Olatide Jeremiah believes the refinery’s decision will foster healthy competition in the downstream oil sector.

“With the naira-for-crude policy reaffirmed, private depots will need to compete aggressively on price. The Dangote refinery is driving this shift. The recent price drop, alongside falling crude prices, gives Nigerians a real shot at cheaper fuel,” Jeremiah said.

He also stressed the need for proper regulation of retail outlets to prevent price gouging and ensure the benefits reach end consumers.

Background

Commissioned in 2023, the Dangote Refinery is Africa’s largest oil refining facility, built to reduce Nigeria’s reliance on imported petroleum products.

With a 650,000 barrels-per-day capacity, the refinery is central to the federal government’s push for energy self-sufficiency.

The Naira-for-Crude policy, introduced in late 2023, is part of Nigeria’s broader economic reforms to boost local production, conserve forex, and promote price stability in the oil sector.

It allows indigenous refineries to purchase crude oil using naira rather than scarce U.S. dollars, reducing pressure on the FX market.

The policy was briefly suspended in March 2025, causing uncertainty in fuel markets.

However, its reinstatement—alongside Dangote’s renewed participation—is now being seen as a turning point.