Dangote, marketers slash petrol depot prices amid FG pressure

Dangote, marketers slash petrol depot prices amid FG pressure

Dangote Petroleum Refinery and several major fuel marketers have reduced their petrol depot prices following mounting pressure from the Federal Government for cost-reflective fuel pricing, a move that could pave the way for lower petrol pump prices across Nigeria.

The latest price cuts come amid increasing competition in the downstream petroleum sector, improved domestic refining capacity and sustained moderation in global crude oil prices, all of which are reshaping the country’s deregulated fuel market.

The development followed a high-level stakeholders’ meeting convened in Abuja by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to address concerns over the disconnect between falling international crude oil prices and the relatively high retail price of Premium Motor Spirit (PMS) in Nigeria.

The meeting brought together representatives of the Dangote Petroleum Refinery, the Major Energy Marketers Association of Nigeria (MEMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Nigerian Association of Road Transport Owners (NARTO) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).

Addressing industry stakeholders, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the current petrol price no longer reflects prevailing international market realities.

According to him, when Brent crude traded above $100 per barrel, marketers quickly adjusted pump prices upward. Therefore, he argued, Nigerian consumers deserve to benefit now that global crude prices have dropped below $70 per barrel.

Lokpobiri stressed that while Nigeria operates a fully deregulated downstream petroleum market under the Petroleum Industry Act (PIA), deregulation should not become an avenue for excessive profiteering. He noted that the law also empowers the NMDPRA to prevent unfair pricing practices and protect consumers from unreasonable fuel costs.

READ ALSO:

• Russian airstrike kills Nigerian medical student days before graduation in Ukraine
• FG meets Dangote, oil marketers to ensure fair petrol prices
• ICYMI: How to Apply for 2026 FRSC Recruitment Successfully

The minister disclosed that discussions with marketers were frank and productive, adding that further engagements would continue until a pricing framework that reflects prevailing crude oil prices is achieved.

“We presented the concerns of Nigerian consumers, and marketers have agreed to review the issues raised. Discussions are ongoing, and we believe meaningful progress is being made,” he said.

Following the meeting, fresh depot pricing data showed that Dangote Petroleum Refinery reduced its Lagos ex-depot petrol price by ₦3 per litre, lowering the price from ₦1,079 to ₦1,076 per litre. The refinery, however, retained its diesel ex-depot price at ₦1,500 per litre.

The latest adjustment adds to a series of recent reductions by the refinery as it continues to leverage increased production efficiency and stronger domestic supply to compete aggressively in Nigeria’s fuel market. Industry observers say Dangote’s pricing strategy is compelling marketers and depot operators to review their prices in order to retain market share.

Several petroleum marketers also announced fresh reductions in their depot prices.

In Lagos, NIPCO reduced its petrol depot price by ₦2 to ₦1,076 per litre, while Pinnacle lowered its price by ₦3 to ₦1,075 per litre. Similarly, Sahara, AIPEC and African Terminal each reduced their depot prices by ₦4, bringing their petrol prices to ₦1,075 per litre, while Aiteo maintained its price at ₦1,075 per litre.

Diesel prices also recorded noticeable declines. Rain Oil cut its Automotive Gas Oil (AGO) price by ₦15 to ₦1,430 per litre, while Ibeto, Duport and Ibachem all reduced their diesel prices to ₦1,430 per litre. Dangote Refinery retained its diesel price at ₦1,500 per litre.

The downward pricing trend extended to other parts of the country.

In Port Harcourt, Matrix reduced its petrol price by ₦8 to ₦1,087 per litre and slashed diesel by ₦55 to ₦1,465 per litre, the largest diesel reduction recorded during the trading session. Sigmund also lowered its petrol price by ₦12 to ₦1,082 per litre, although it marginally increased diesel by ₦2 to ₦1,463 per litre.

In Calabar, Fynfield reduced its petrol price by ₦7 to ₦1,090 per litre, while Soroman lowered its price by ₦5 to the same level.

In Warri, Matrix and Prudent both reduced petrol prices by ₦5 to ₦1,085 per litre. On the diesel side, Prudent cut its price by ₦25 to ₦1,475 per litre, while A.Y.M. Shafa reduced its diesel price by ₦3 to ₦1,455 per litre.

Energy analysts believe the latest reductions underscore how competition is transforming Nigeria’s deregulated downstream petroleum sector. The commencement of large-scale operations at the Dangote Petroleum Refinery has significantly improved domestic fuel availability, reduced dependence on imported petroleum products and compelled depot owners and marketers to compete more aggressively on price. The trend has also been supported by relatively stable international crude oil prices, easing pressure on the cost of refined petroleum products.

The Chief Executive of the NMDPRA, Mallam Rabiu Umar, said government engagement with marketers became necessary because retail petrol prices had not fallen in line with declining global crude oil prices. According to him, deregulation should promote both investor confidence and consumer protection, stressing that sustainable profitability for marketers and affordable fuel prices for Nigerians can coexist within a transparent and competitive market.

Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed optimism that petrol pump prices could eventually fall below ₦800 per litre.

IPMAN National President, Abubakar Garima, attributed the projection to plans by independent marketers to begin purchasing products directly from the Dangote Petroleum Refinery, eliminating several intermediary costs that currently push up retail prices. According to him, the association has already reduced petrol prices by about ₦125 per litre in several parts of the country and will continue to lower prices whenever acquisition costs decline.

Industry stakeholders believe that if global crude oil prices remain stable and domestic refining capacity continues to improve, Nigerians could witness additional reductions in petrol prices in the coming weeks, providing much-needed relief for households, transport operators and businesses grappling with high energy costs.

If you’d like, I can also tighten this further into a more concise 700–900-word premium news feature in the editorial style commonly used by major Nigerian news platforms.

Dangote, marketers slash petrol depot prices amid FG pressure