Nigeria’s downstream petroleum market is undergoing a major reset as the Dangote Petroleum Refinery slashes petrol pump prices and establishes ₦739 per litre as the new national benchmark, starting with its retail partner, MRS Oil Nigeria Plc.
The latest adjustment follows a significant cut in the refinery’s ex-depot price from ₦828 to ₦699 per litre, a move that is already reshaping pricing dynamics, intensifying competition and forcing marketers to realign with underlying cost structures.
Dangote moves to crash pump prices
Speaking at a media briefing at the Lekki Free Trade Zone refinery on Sunday, President of the Dangote Group, Alhaji Aliko Dangote, said MRS stations would begin selling petrol at ₦739 per litre from Tuesday, while other retail partners are expected to comply shortly after.
Dangote warned that some marketers have continued to keep pump prices artificially high despite lower depot costs, a practice he described as deliberate sabotage. He said the refinery will drive cost savings across the entire distribution chain and pass the benefits of domestic refining directly to consumers.
He explained that petrol transportation within Lagos costs between ₦10 and ₦15 per litre, putting the realistic pump price at around ₦715 to ₦739 per litre. “There is no justification for selling petrol at ₦900 when the cost structure clearly does not support it,” he said.
Import licences raise supply imbalance concerns
Beyond pricing, Dangote expressed concern over the continued issuance of petrol import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), warning that excessive imports threaten local refining investments.
He disclosed that regulators had approved imports of about 7.5 billion litres of petrol for the first quarter of 2026, even though authorities insist that domestic refineries can fully meet demand. Industry experts note that such volumes risk creating oversupply, weakening refinery margins and distorting market signals.
Dangote added that several modular refineries are already operating under financial pressure and could shut down if import volumes remain unchecked.
Market impact and enforcement strategy
Under the new pricing framework, independent marketers and bulk buyers can lift petrol directly from the Dangote refinery at ₦699 per litre, inclusive of statutory regulatory charges.
Dangote assured Nigerians that the refinery will prioritise nationwide supply during the peak December to January demand period and deploy all available commercial tools to enforce compliance with the ₦739 per litre benchmark.
For now, the NMDPRA has declined to comment.
As the festive season approaches, analysts say the price reset could stabilise pump prices, reduce arbitrage and accelerate Nigeria’s transition towards a more efficient, competitive and locally driven downstream petroleum market.
