Petrol Price May Drop to N800/Litre as Dangote Refinery Slashes Ex-Depot Rates Again, Naira-for-Crude Deal Resumes, and Oil Prices Decline
The pump price of Premium Motor Spirit (PMS), popularly known as petrol, may fall further to about N800 per litre in the coming weeks, following a fresh price cut by Dangote Petroleum Refinery and the full resumption of the naira-for-crude oil swap deal for local refiners.
Oil marketers and industry experts disclosed this on Wednesday, citing the recent drop in crude oil prices and reduced reliance on foreign exchange as key factors driving the price down. The global benchmark, Brent crude, currently hovers around $65 per barrel, but experts say if it drops to $50, petrol could sell between N650 and N700 per litre.
Dangote Refinery, in a second downward adjustment in under a week, slashed its ex-depot price for petrol to N835 per litre, down from N865, marking a N30 reduction and a 3.5% drop. This is its third price cut in six weeks.
A pro forma invoice and checks on petroleumprice.ng confirmed the new rate, which includes all regulatory charges. Key distribution partners like MRS, AP (Ardova), Heyden, Optima Energy, Hyde, and Tecno Oil will now retail petrol between N890 and N920 per litre, depending on region.
In a statement confirming the change, Anthony Chiejina, Group Chief Branding and Communications Officer of the Dangote Group, said the move reaffirms the company’s commitment to making fuel more affordable for Nigerians. He noted that the reductions are expected to have a positive ripple effect on the economy, easing pressure on consumers and boosting overall growth.
The refinery also revised prices for other refined products. Diesel is now priced at $608 plus a $70 surcharge, payable in naira at N1,650/$ or in dollars. Jet fuel sells at $664.75 plus surcharges, while cooking gas prices are on hold.
Meanwhile, oil marketers imported over 117,000 metric tonnes (156.9 million litres) of petrol between April 8 and 16, after securing regulatory approval. Documents from the Nigerian Ports Authority and Major Energies Marketers Association of Nigeria revealed the drop in landing cost to N853 per litre, down from N856.75.
The price drop aligns with the reactivated naira-for-crude policy, which allows local refiners to receive crude oil in exchange for refined products, cutting out FX dependency. The Federal Ministry of Finance reaffirmed the long-term nature of this policy, designed to strengthen local refining and boost energy security.
Commenting on the development, Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the reduced price is a direct impact of the naira-for-crude deal. “If crude hits $50, we could see petrol priced as low as N650 per litre,” he said, though he warned of possible losses for marketers.
Oil and gas analyst Olatide Jeremiah added that the ongoing price war between Dangote and private depots is good news for Nigerians. He noted that Dangote’s cut is forcing competitors to reconsider their pricing, especially as many still hold stocks purchased at higher landing costs.
However, Dr. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, cautioned that constant price shifts could destabilize the market.
Despite these reductions, many retail stations across Nigeria have yet to reflect the new prices at the pump. Stakeholders are urging marketers to pass on the benefits to consumers promptly.
With Dangote Refinery’s growing influence and government-backed supply agreements in place, Nigerians may soon enjoy more stable and affordable petrol prices.
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