Dangote Petroleum Refinery has once again brought some relief to the downstream oil sector by cutting the ex-depot price of petrol to N835 per litre. This new adjustment, announced on April 16, 2025, marks the second reduction in just two weeks. It shows a clear effort by the refinery to align domestic fuel prices with the recent global drop in crude oil rates, and possibly to put some pressure on oil marketers to follow suit.
The decision was influenced largely by the decline in international crude oil prices, which slipped from over $70 to about $64 per barrel. This global shift has allowed refineries like Dangote’s to lower production and distribution costs, creating some room for local price adjustments. The refinery had earlier dropped the ex-depot price from N880 to N865, and this latest cut continues that trend.
However, there’s been a noticeable disconnect between these refinery-level price cuts and what consumers are paying at filling stations. Despite the reduction at the gantry, oil marketers have not mirrored these changes in their retail prices, keeping pump prices relatively high. This has raised concerns about transparency and pricing dynamics in the distribution chain.
Still, the refinery’s consistent price drops signal a shift in Nigeria’s refining capacity and could have longer-term effects on reducing dependency on fuel imports. It may also hint at Dangote’s strategy to gain stronger control of the domestic fuel market by offering competitive pricing, especially now that local production is beginning to ramp up.
Source: Business day