Nigerians are set to see a reduction in pump prices following a cut by the Dangote Refinery, a move expected to ease the financial burden on consumers and businesses nationwide.
On Thursday, the $20 billion refinery reduced its ex-depot petrol price by N85, or 6.6 percent, to N1,200 per litre from N1,285. This new price undercuts rates from independent depot owners, which have ranged between N1,240 and N1,255 per litre. The adjustment follows a period of volatile global crude oil prices, which had surged above $100 per barrel due to geopolitical tensions before settling at approximately $107 for Brent and $93 for West Texas Intermediate early Friday.
Industry analysts note that the refinery’s price review aligns with calls for local fuel cost relief as international oil markets cooled. The change is anticipated to trigger a corresponding drop in retail prices at filling stations. Marketers sourcing from Dangote are expected to pass on the savings, with projections suggesting a reduction of N50 to N70 per litre, potentially lowering prices to around N1,291–N1,311 at major outlets.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed members would adjust their retail prices accordingly. “Our members will have to adjust to a new retail price,” Ukadike stated. Similarly, managers at major marketing firms, such as MRS, indicated they await official price templates from headquarters to implement new rates.
This development offers a respite after weeks of sharp fuel price hikes. Over the past month, Nigeria, mirroring global trends, faced rising costs due to supply disruptions stemming from Middle East conflicts. Retail petrol prices in cities like Abuja jumped by over 50 percent since March, from about N875–N900 per litre to between N1,361 and N1,370. The Dangote Refinery’s own prices had increased at least five times during this period, compounding the pressure on consumers.
The refinery’s latest price cut signals a shift as crude oil costs recede. While the immediate effect will be felt at the pumps, the move underscores the growing influence of domestic refining on Nigeria’s fuel pricing structure. Marketers are now preparing to reflect the new depot rates, with consumers likely to see tangible relief from Friday onward, provided the downward trend in global oil markets holds.
