In a significant development set to ripple across Nigeria’s downstream oil sector, the Dangote Refinery has slashed its ex-gantry petrol loading price to N865 per litre, marking a N15 reduction from the previous rate of N880. This strategic price adjustment, confirmed early Thursday morning, is being hailed as a timely relief for millions of Nigerians grappling with soaring fuel costs.
According to The Punch, which first broke the story, the refinery began issuing notifications to marketers and fuel distributors overnight, alerting them to the new pricing. Sources within the industry confirmed that the update came via official communication, complete with Pro forma invoices and verification from petroleumprice.ng, a platform that tracks daily petroleum pricing data across the country.
This reduction comes on the heels of growing speculation from energy sector insiders that Dangote’s 650,000 barrels per day (bpd) mega refinery was preparing to reduce its petrol loading cost. The speculation turned into certainty on Thursday, delivering what many are calling a much-needed boost to the local fuel supply chain.
“This is a positive and strategic step in the right direction,” said Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN). “This reduction is part of a broader plan to stabilize and eventually reduce fuel prices across the country. Our marketers are already responding to the change.”
Ukadike noted that this development is in line with ongoing policy reforms aimed at fortifying Nigeria’s domestic refining capacity. Most notably, it follows the Federal Executive Council’s (FEC) recent approval of the Naira-for-Crude policy—a long-awaited initiative designed to curb Nigeria’s reliance on foreign exchange for crude oil purchases and bolster local production efforts.
Approved on Wednesday, the Naira-for-Crude agreement is expected to offer long-term support to domestic refiners like Dangote by insulating them from the volatility of the international currency markets. In theory, this would translate to lower and more stable pump prices for Nigerian consumers.
“The goal is not just temporary relief,” said a senior official at the Ministry of Petroleum Resources who requested anonymity. “The Naira-for-Crude framework, coupled with price discipline from key players like Dangote, sets the stage for long-term fuel affordability and reduced import dependence.”
The impact of the reduction is already being felt in major depots across Lagos and other key distribution hubs, with some marketers beginning to review pump prices. Although the full effect on retail prices will likely unfold over the coming days, analysts are optimistic that this downward adjustment will influence both urban and rural fuel pricing.
Industry experts also believe that the Dangote Refinery’s decision could put competitive pressure on other domestic refineries and importers to follow suit, especially as Nigeria pushes toward refining more of its petroleum products locally.
With inflation and transport costs placing increasing pressure on households, today’s announcement may offer a glimmer of hope for relief in the near future.
As Nigeria continues its march toward energy independence, Thursday’s price drop could mark a pivotal moment in reshaping the country’s fuel economy—making local refining not just viable, but vital to the nation’s economic stability.
