Dangote Petroleum Refinery has once again reduced its petrol (PMS) ex-depot price, this time to ₦805 per litre, down from ₦825. The price cut, announced today, is expected to trigger a response from private fuel depots, which may also lower their prices to stay competitive.
Marketers Confirms the Price Drop
An anonymous marketer said, “It’s true, I sighted the PFI, ₦805 ex-depot, ₦815 including NMDPRA ₦10, marketers are selling ₦817 – ₦818”
Dangote Refinery, which processes 650,000 barrels of crude oil per day, says it has over 500 million litres of petrol available, ensuring stable supply across the country.
Fuel Prices Dropping Rapidly
This is Dangote’s second petrol price cut in two weeks. On February 27, it reduced the ex-depot price from ₦890 to ₦825, leading to lower pump prices at filling stations. Now, with the new ₦805 rate, petrol prices at the pump could soon drop below ₦850 per litre in cities like Lagos and Abuja.
Analysts say these reductions are linked to falling crude oil prices and increased local production. Financial expert Paul Alaje recently predicted that petrol prices could drop to between ₦650 and ₦800 if competition continues.
Private Depots to Respond
Fuel depots that buy directly from refineries or imports fuel are now under pressure to adjust their prices. Many depots currently sell above ₦830, but with Dangote setting a lower benchmark, they may be forced to reduce their rates to attract buyers.
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) confirmed that many depot owners are already negotiating new bulk purchase deals at lower prices.
Billy Gillis-Harry, PETROAN’s President, said, “This is the benefit of a free market. We expect further price reductions in the coming days.”
Impact on Consumers and Fuel Marketers
For everyday Nigerians, the ₦805 ex-depot price is a welcome relief. With transport and food prices tied to fuel costs, this reduction could help ease inflation. Many people have taken to social media, praising Dangote for leading the charge to make petrol more affordable.
However, fuel marketers who bought stock at higher prices may now struggle to sell, recounting losses. Some had already purchased PMS at ₦825 ex depot price, meaning they may need to sell quickly before new stock arrives at a lower price. PETROAN has renewed calls for a stable pricing system to prevent such sudden losses for retailers.
What’s Next?
Dangote’s move could further shake up the fuel market, reducing Nigeria’s reliance on expensive imports. The Nigerian National Petroleum Company Limited (NNPCL), which operates the country’s state-owned refineries, is expected to react soon.
For now, consumers can expect cheaper fuel, while depot owners and marketers scramble to adjust their prices. If this price war continues, petrol could soon drop to as low as ₦800 per litre or less.
Dangote’s ₦805 per litre price has set a new standard in Nigeria’s fuel market. With private depots and NNPCL likely to respond, the competition could drive prices even lower benefiting millions of Nigerians.
