In a move set to alleviate financial pressures for millions of Nigerians, Dangote Petroleum Refinery has reduced the ex-depot price of petrol to ₦825 per litre, effective May 12, 2025, marking its third price cut in 2025. This latest reduction, down from ₦835 per litre, reflects the refinery’s ongoing efforts to make fuel more affordable amid Nigeria’s economic challenges and intensifying competition in the domestic energy market.
The price slash follows the reinstatement of the federal government’s naira-for-crude policy, which allows Dangote Refinery to purchase crude oil in naira, reducing reliance on dollar-based transactions. The 650,000-barrels-per-day facility, Africa’s largest, has adjusted its gantry price to ₦825, enabling marketers to sell petrol at pump prices as low as ₦860 to ₦910 across the country, depending on location and logistics costs. This development comes after a series of price adjustments earlier in 2025, with the refinery dropping its ex-depot price from ₦950 to ₦890 in February and to ₦865 in April, driven by favorable global crude oil price trends and increased domestic refining capacity.
The reduction is expected to have a ripple effect on Nigeria’s economy, where fuel costs significantly influence transportation, food prices, and overall cost of living. The refinery’s decision aligns with the operational revival of state-owned refineries in Port Harcourt and Warri, which began supplying petroleum products in late 2024, further boosting local supply and reducing Nigeria’s dependence on imported fuel. The naira-for-crude policy, fully implemented in April 2025 after a temporary suspension, has stabilized the refinery’s operations by ensuring a steady supply of crude from the Nigerian National Petroleum Company (NNPC).
Industry experts attribute the price cut to heightened competition between Dangote and NNPC, as well as the refinery’s strategic focus on capturing a larger share of the domestic gasoline market, estimated at 60% as of February 2025. The refinery’s ability to exceed Nigeria’s daily fuel demand of 480,000 barrels has positioned the country as a potential net exporter of refined petroleum products, a milestone that could bolster foreign exchange reserves. However, some marketers have expressed concerns about financial losses from earlier purchases at higher prices, highlighting the challenges of rapid price fluctuations in the downstream sector.
The price reduction is seen as a response to global oil market dynamics, with Brent crude prices stabilizing around $60 per barrel in early 2025, down from $82 in January. Dangote Refinery has emphasized its commitment to passing on savings from lower crude costs to consumers, while urging marketers to reflect the reduced ex-depot price at the pump. The move has been welcomed as a step toward easing inflationary pressures, which stood at 24.48% in January 2025, down from 34.8% in December 2024, partly due to increased domestic fuel production.