Photo: Dangote promised stable, cheaper petrol for local market
Nigeria’s Dangote Petroleum Refinery has again reduced the gantry price of petrol, cutting the ex-depot rate from ₦828 to ₦699 per litre, according to real-time pricing data from Petroleumprice.ng.
The adjustment, which took effect on December 11, 2025, represents a 15.58% reduction and marks the refinery’s twentieth downward price review this year. Industry sources confirmed the adjustment on Friday, noting that the refinery “reduced its petrol price to ₦699 per litre,” in line with its promise to gradually push domestic pump prices lower as production stabilises and output increases.
The latest reduction comes barely five days after Chairman Aliko Dangote reaffirmed his commitment to supplying fuel at “reasonable and competitive prices” during a meeting with President Bola Tinubu. Dangote had said the refinery’s growing production capacity, combined with long-term crude procurement arrangements and efficiency gains, would enable it to compete directly with imported petrol and correct pricing distortions caused by years of heavy dependence on foreign supply.
The refinery’s pricing strategy has also been shaped by challenges such as cross-border smuggling, foreign exchange volatility and the incomplete deregulation of Nigeria’s downstream sector.
This sustained downward trend in ex-depot prices is already reshaping the market. Independent marketers, who previously relied on costlier imported products, now have an alternative supply that is both cheaper and more predictable.
Transport operators, manufacturing firms and logistics companies are projecting reduced operating costs if the refinery maintains price consistency, and analysts believe the trend could ease inflationary pressure over the medium term. Although pump prices across states vary due to transportation, taxation and retail margins, the refinery’s price cuts have historically led to corresponding reductions at filling stations within days or weeks.
The federal government views the refinery’s output as central to its energy security goals and its strategy to cut the multibillion-dollar annual spending on fuel imports. Since mid-2023, the Tinubu administration has maintained full domestic refining capacity. supported by the gradual rehabilitation of state-owned refineries and incentives for private refiners, it will stabilise supply, strengthen the naira and reduce the fiscal burden associated with exchange rate interventions in the petroleum supply chain.
Officials also argue that increased local refining could curb smuggling by narrowing price gaps with neighbouring countries, though enforcement remains a challenge.
The Dangote Refinery, with a projected capacity of 650,000 barrels per day at full operations, continues to ramp up production phases while negotiating crude supply arrangements with both the Nigerian National Petroleum Company Limited (NNPC) and international producers. Its repeated price revisions in 2025 underscore its broader strategy to capture the domestic market, push out expensive imports and progressively reduce the influence of international traders on local fuel pricing.
Whether this momentum translates into long-term price stability will depend not only on the refinery’s output but also on government policy coherence, security of crude supply, pipeline protection, and broader macroeconomic stability.
