Petrol Price May Drop Below N900/Litre Nationwide as Dangote Refinery Reduces Depot Price

Petroleum marketers and retailers have indicated that the recent reduction in the ex-depot price of petrol by Dangote Refinery will likely result in lower pump prices across Nigeria.

On Monday, the Dangote Refinery, which processes 650,000 barrels of crude oil per day and is located in Lekki, Lagos, announced a N10 refund on petrol sold at N835 per litre. This update was confirmed by the National Secretary of the Independent Petroleum Products Marketers Association of Nigeria (IPMAN) and the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry.

This adjustment means that affiliated stations such as MRS, Ardova (AP), Heyden, Optima Energy, Hyde, and Techno Oil are expected to revise their petrol pump prices downward.

As of Monday evening, MRS and other partner stations were selling petrol at N910 per litre. However, a staff member at an MRS outlet along the Kubwa Expressway in Abuja disclosed that the station plans to reduce its price to N900 per litre by midweek.

Additionally, a reliable source from the Nigerian National Petroleum Company Limited (NNPCL) revealed that the state-run oil firm might also lower its petrol price to between N880 and N900 per litre soon.

Attempts to get a statement from Dangote Group’s spokesperson, Anthony Chiejiena, were unsuccessful at the time of reporting.

Since April 9, when the Federal Government renewed its crude-for-naira deal with the $20 billion Dangote Refinery, the company has cut its petrol prices three times. The price dropped from N880 to N865, then to N835, and most recently to N825 per litre.

IPMAN’s National Secretary, James Tor, explained that these price cuts are expected due to the deregulation of the downstream sector. He said that market forces now determine petrol prices, and reductions from suppliers like MRS, NIPCO, and NNPC affect the whole market.

He also noted that the new collaboration between the NNPCL management under Bayo Ojulari and Dangote Group is a step toward stabilizing Nigeria’s fuel market.

PETROAN President Gillis-Harry also acknowledged that the industry is reacting to the Dangote price cuts, though he warned that constant fluctuations may harm market stability. He stressed the importance of predictable pricing for the health of the industry and said that although Dangote’s strategy may be to gain market share, long-term capital and consistency are key.

He added that PETROAN supports the Dangote–NNPCL collaboration if it helps improve energy access in Nigeria.

Meanwhile, global oil prices have declined, with Brent crude at $64.72 and WTI at $61.72 early Tuesday morning, according to oilprice.com.

This news follows a recent meeting between Dangote and the new NNPCL leadership.