In a significant development that is poised to provide relief to millions of Nigerians, the Dangote Refinery has officially reduced the ex-depot price of premium motor spirit (PMS), commonly known as petrol, from N880 to N865 per litre. This N15 reduction comes as a direct response to the federal government’s renewed commitment to the Naira-for-Crude oil initiative and is expected to influence retail fuel prices nationwide in the coming days.
The price slash was confirmed on Thursday morning via a notice issued to petroleum marketers and downstream operators. A pro forma invoice reviewed by our correspondent, alongside verification from the petroleumprice.ng platform, corroborated the new pricing from the 650,000-barrel-per-day mega-refinery.
This move aligns with prior expectations from key industry players and marketers who earlier hinted at a possible reduction in loading costs by the end of the week. The Independent Petroleum Marketers Association of Nigeria (IPMAN), through its National Publicity Secretary, Chinedu Ukadike, had previously projected this development, citing ongoing government negotiations and policy interventions.
This strategic price reduction follows closely on the heels of the Federal Executive Council’s (FEC) directive for full implementation of the suspended Naira-for-Crude agreement with indigenous refiners. The directive, issued on Wednesday, mandates oil producers to prioritize local refiners like Dangote and other modular refinery operators for crude oil supply, with payment denominated in naira rather than U.S. dollars.
The policy shift, which marks a bold attempt to decouple Nigeria’s fuel market from volatile foreign exchange fluctuations, is aimed at promoting energy security, cutting down on petroleum importation, and stabilizing domestic fuel pricing.
The Ministry of Finance, in a public statement released on its official X (formerly Twitter) handle, emphasized that the initiative is not a stop-gap measure but a “key policy directive designed to support sustainable local refining and bolster energy security.”
A key outcome of Tuesday’s high-level meeting involving the Minister of Finance, Wale Edun, and stakeholders from the Dangote Refinery, was a reaffirmation of the government’s unwavering commitment to fostering a self-sustaining petroleum industry that serves the Nigerian economy and its citizens.
The Dangote Refinery’s decision to adjust its ex-depot pricing is already being seen by industry analysts as a potential turning point for fuel affordability in the country. Independent marketers, who rely heavily on competitive loading costs to set pump prices, are expected to pass on the cost benefit to consumers.
Fuel retailers across major cities have hinted that pump prices could drop by as much as N10–N20 per litre in the coming days, depending on logistics and distribution costs. Such a drop would provide much-needed relief to Nigerians, many of whom have been grappling with increased transportation fares, higher commodity prices, and economic pressures driven by inflation and exchange rate volatility.
Commissioned earlier this year, the Dangote Refinery is fast positioning itself as a game-changer not only in Nigeria but across Africa’s energy sector. Located in the Lekki Free Trade Zone, Lagos, the facility is the largest single-train refinery in the world, capable of refining both petrol and diesel at scale.
This week’s reduction in petrol prices is the first of what analysts predict may be several pricing interventions by the refinery, especially if government incentives and supply chain efficiency are sustained.
As the Nigerian government intensifies efforts to reform the downstream petroleum sector, the partnership with domestic refiners like Dangote could be instrumental in rewriting the country’s energy narrative. With petrol prices now adjusted downward to N865 per litre, Nigerians can expect modest relief — and perhaps, renewed optimism — in the weeks ahead.