Petrol prices in Nigeria have started trending downward, offering some relief to consumers facing rising energy costs. Industry experts attribute this positive shift to increased domestic refining by Dangote Refinery, a stronger naira, and more efficient supply chains. These combined factors are helping to stabilize the downstream market, reduce smuggling pressures, and promote competitive pricing for motorists nationwide.
Since it began partial operations, Dangote Refinery has significantly reshaped Nigeria’s fuel landscape. The facility has implemented multiple price cuts throughout 2025 and has pledged to supply over 1.5 billion litres of petrol monthly starting December. According to oil marketers, this growing domestic output is a key driver behind the steady price reduction.
Chinedu Ukadike, Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the downward trend. He explained that the recent strengthening of the naira and increased refinery production have eased dollar-related pressures on fuel prices. Kingsley Smart, a fuel distributor in Abuja, added that improved supply chains have eliminated scarcity, stabilizing the market and removing the need for panic buying.
Dangote Refinery itself has maintained that the price cuts are part of an internally driven strategy to boost domestic fuel production, rather than a response to changes in government import tariffs. Between August and November 2025, the refinery lowered its gantry and coastal petrol prices, reflecting a focus on efficiency and market competitiveness. These reductions have prompted independent marketers to adjust their pump prices accordingly.
While domestic refining progress is helping lower costs, petrol smuggling remains a challenge. Dangote and government officials continue to enforce border controls and legal exports to neighboring countries as a way to reduce black-market trade. According to Ukadike, independent marketers are now operating longer hours with greater confidence in supply, signaling a more stable and consumer-friendly fuel market across Nigeria.
source: Business day