Nigeria’s pump prices for Premium Motor Spirit (PMS), commonly known as petrol, have recorded a significant drop after the Dangote Petroleum Refinery, slashed its ex-depot prices, prompting the Nigerian National Petroleum Company Limited (NNPC) and other major marketers to follow suit.
As of Friday, petrol prices fell from a peak of ₦950 per litre earlier in the week to as low as ₦865 per litre in parts of Lagos and Ogun State.
A survey across filling stations revealed that NNPC retail outlets now sell petrol for ₦865 in Lagos and ₦870 in Ogun, while partners of Dangote Refinery such as MRS and Ardova adjusted prices to ₦865 and ₦875 respectively.
Other independent marketers including Heyden, Fatgbems, Rainoil, and Asharami reduced their pump rates, though some still sold at slightly higher prices ranging from ₦875 to ₦895 per litre.
In regions further away from Lagos, including the North, South-East, and South-South, petrol prices remain higher due to transportation and logistics costs.
The Dangote Group, through its Chief Branding and Communications Officer, Anthony Chiejina, confirmed the price adjustment in a statement earlier this week.
The company announced that its ex-depot rate had been reduced from ₦850 to ₦820 per litre, describing the move as part of its long-term commitment to ensure affordable and uninterrupted fuel supply nationwide.
Before the refinery’s intervention, petrol prices had climbed above ₦900 per litre despite declining crude oil prices, which fell from nearly $69 to $66 per barrel last weekend.
Market observers argue that some filling stations had been exploiting limited supply dynamics, keeping prices artificially high.
Until 2024, NNPC was the sole importer and price regulator of petrol due to government subsidies.
However, with the full deregulation of the downstream sector and the commencement of large-scale production by the 650,000-barrel-per-day Dangote Refinery, Nigeria’s fuel pricing mechanism has shifted dramatically.
The Dangote refinery, currently the largest in Africa, now plays a leading role in stabilising prices. Analysts suggest that Dangote’s ex-depot price cuts will likely pressure other marketers to remain competitive, reshaping Nigeria’s downstream market.
Petrol prices in Nigeria surged to over ₦1,200 per litre last year after subsidies were completely removed, triggering inflation across transportation, food, and services.
The latest reduction to below ₦900 has been welcomed by many Nigerians as a relief, though consumers argue that prices remain far from affordable.
A Lagos resident, Favour Samson, told ireport247news.com:
“The cuts are good, but ₦865 per litre is still very high. Nigerians want prices back between ₦200 and ₦500 — that’s when we will truly feel the impact across the economy.”
Economists, however, warn that such levels may be unrealistic in the current deregulated environment, where global crude prices and exchange rate fluctuations directly determine local petrol costs.
Industry stakeholders believe the recent reduction is an important step towards stabilising Nigeria’s energy sector.
With Dangote Refinery expected to reach full operational capacity by the end of 2025, further cuts could follow as distribution expands and economies of scale take effect.
For now, the refinery’s influence has brought visible competition to a sector previously dominated by NNPC.
Whether Nigerians will see petrol prices fall to levels they consider affordable remains uncertain, but the trend signals a new era in the country’s downstream petroleum industry.