Dangote Refinery cuts petrol price to ₦828 per litre despite rising crude cost

Dangote Refinery cuts petrol price to ₦828 per litre despite rising crude cost

The Dangote Petroleum Refinery has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, from ₦877 to ₦828 per litre, representing a 5.6 percent decrease.

The downward adjustment comes amid a rebound in global crude oil prices, which rose to an average of $64 per barrel on Thursday, up from $62 the previous day.

Newstrends.ng findings indicate that the price cut followed a reinforced naira-for-crude supply agreement between the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPC Ltd). The arrangement will see NNPC supply the 650,000-barrels-per-day refinery with five December-loading crude shipments, including Amenam, Bonny Light, Forcados, and Qua Iboe grades.

Industry sources confirmed that loading at the new price commenced early Friday at the refinery’s depot in Lagos, raising hopes of a corresponding reduction in pump prices nationwide in the coming days.

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According to Petroleumprice.ng, the development is expected to bring some relief to marketers and consumers who have faced weeks of elevated retail prices.

Despite the adjustment, Dangote’s gantry price remains below import parity, according to a report by S&P Global Commodity Insights presented at the Major Energy Marketers Association of Nigeria (MEMAN) conference in Lagos on Thursday.

The report stated that as of October 17, 2025, Dangote’s ex-depot price of ₦877 per litre was lower than both the average “into-tank” cost of imported fuel in Lagos and the ship-to-ship (STS) value recorded at Lomé, Togo. It added that the pricing gap underscores the refinery’s competitive cost advantage in Nigeria’s downstream market, despite global fluctuations driven by sanctions on Russian crude and soft demand.

The report further revealed that Nigeria’s fuel import volume has dropped to below 200,000 barrels per day, down from about 500,000 barrels per day in early 2023, reflecting the growing impact of domestic refining capacity.

However, S&P Global cautioned that strong regulatory oversight is essential to sustain market transparency, fair competition, and consumer protection under the current deregulated regime.

It also noted that while Nigeria’s downstream transition is being shaped by declining imports and increased refining capacity, operational and logistical challenges persist across existing refineries.

Dangote Refinery cuts petrol price to ₦828 per litre despite rising crude cost