By Ayomide Otitoju
The Dangote Petroleum Refinery has reduced its petrol gantry price, lowering the ex-depot rate to N699 per litre with effect from December 11, in a move expected to influence downstream fuel pricing ahead of the festive travel season.
The latest adjustment represents a reduction of about N129 per litre, or 15.5 per cent, from the previous price of N828. It is the refinery’s 20th petrol price cut this year, underscoring intensifying competition in Nigeria’s deregulated downstream oil market.
Data published by Petroleumprice.ng confirmed the new benchmark price. A refinery source told local media that the management remains committed to maintaining “reasonable and competitive” pricing despite volatility in global energy markets and the persistent challenge of fuel smuggling.
Following the announcement, several depot operators reportedly adjusted their prices downward, signalling early indications of a broader market response.
The development comes amid wider shifts in Nigeria’s fuel pricing landscape. The Nigerian National Petroleum Company Limited (NNPC Ltd) has also announced recent pump price reductions, cutting retail prices by about N80 per litre in response to competitive pressures and efforts to ease the burden on consumers. Petrol prices at some outlets have reportedly declined to between N915 and N937 per litre in parts of the country.
Industry analysts attribute the recent pricing dynamics largely to increased local refining capacity, particularly from the Dangote facility—Africa’s largest single-train refinery—as well as growing competition between private refiners and NNPC Ltd.
Nigeria’s fuel market has historically been plagued by shortages and high costs despite the country’s crude oil endowment, resulting in long queues, higher transport costs and economic strain on households and businesses.
Public reaction to the latest price cut has been mixed but largely positive. Many Nigerians took to social media platform X to express relief over the reduction, while others highlighted longstanding frustrations linked to supply instability, import dependence and what critics describe as exploitative practices by some marketers. One widely shared post praised industrialist Aliko Dangote for the intervention, while lamenting years of hardship associated with fuel scarcity and high prices.
Despite the optimism, experts caution that the extent to which the lower ex-depot price translates into cheaper pump prices nationwide will depend on how quickly retailers adjust their rates. Factors such as distribution costs, smuggling, foreign exchange movements and broader economic conditions are expected to continue influencing final retail prices.
The Dangote Petroleum Refinery, designed to cut Nigeria’s reliance on imported petroleum products and stabilise domestic supply, has consistently revised its petrol prices since ramping up production. Industry groups say its aggressive pricing strategy has been a key driver of recent downward trends, compelling competitors to review their pricing to retain market share.
NNPC Ltd, meanwhile, has also made periodic price reductions, although public response has at times described these moves as insufficient given the prevailing cost-of-living pressures.
