The Dangote Petroleum Refinery has cut its ex-depot price of petrol from ₦880 to ₦840 per litre, offering Nigerians temporary relief amid a prolonged fuel crisis.
The ₦40 reduction, effective Monday, follows a drop in global oil prices after tensions between Iran and Israel began to ease.
Tony Chiejina, spokesperson for the $20 billion Lagos-based refinery, confirmed the price cut in a statement. “This reflects the marginal drop in crude oil benchmarks. We are committed to cushioning the burden on Nigerians,” he said.
The price drop is expected to cascade to filling stations with direct purchase agreements, including MRS Oil, Ardova Plc, and Heyden. Pump prices may now fall below ₦900 per litre, still steep, but a step down from the recent highs.
Oil prices retreated following a fragile ceasefire between Iran and Israel. Brent crude, which surged above $80 per barrel during the conflict, dropped to $67.61 after the United States struck Iranian nuclear facilities and brokered a de-escalation. The resulting calm helped ease pricing pressure globally.
The Dangote Refinery, Africa’s largest with a capacity of 650,000 barrels per day, also unveiled a far-reaching support initiative. From August 15, 2025, the refinery will distribute petrol and diesel freely to selected dealers and marketers using 4,000 newly procured Compressed Natural Gas (CNG)-powered tankers.
In addition, marketers buying over 500,000 litres will be eligible for a two-week credit facility to double their stock, backed by bank guarantees. The move, hailed by some as innovative, has met criticism from rival operators who fear being pushed out of business.
For years, Nigeria’s fuel woes have stemmed from its reliance on imported refined products. With all four state-owned refineries defunct until recently, the country leaned heavily on the NNPC for fuel imports. After the fuel subsidy was removed in May 2023, petrol prices jumped fivefold, from ₦200 to over ₦1,000 per litre, sparking nationwide frustration.
The Dangote Refinery’s operational push and pricing strategy may not solve Nigeria’s energy problem overnight. But it is beginning to shift power away from reliance on imports, offering at least a glimpse of what locally refined fuel could achieve in terms of cost control and availability.
Read more on Nigeria’s $2.4bn refineries idle as fuel traders rely on imports, Dangote’s output
