Business
Why Dangote Refinery Slashed Petrol Price
By Gideon Ayeni
In a significant move aimed at reducing fuel prices nationwide, the Dangote Refinery has announced a downward revision of its ex-depot petrol loading price to N865 per litre. The reduction has been linked to the Federal Government’s pledge to continue the naira for crude policy to domestic refineries.
This marks a N15 reduction from the previous Dangote petrol price rate of N880 per litre recorded just a day earlier.
According to reports, the price cut was communicated to marketers and customers via a notice issued on Thursday morning, with a pro forma invoice confirming the new rate. Further checks on petroleumprice.ng also verified the development.
Industry insiders had earlier disclosed that the 650,000-barrel-per-day refinery was expected to reduce its petrol loading cost before the end of the week — a move predicted to ease pressure on the pump price and support ongoing efforts to stabilize fuel supply.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), affirmed the anticipated price adjustment. He linked the drop to the Federal Government’s recent directive mandating the implementation of the naira-for-crude initiative with domestic refiners.
The Federal Executive Council (FEC), after months of delay, gave the green light on Wednesday for the full activation of the suspended naira-for-crude policy — a strategic shift aimed at empowering local refineries and cutting reliance on foreign exchange for fuel imports.
In a statement published on its official X handle, the Ministry of Finance described the initiative as a “key policy directive” and not a stopgap measure. According to the ministry, the plan is part of a broader strategy to ensure energy security and foster long-term sustainability in Nigeria’s refining sector.
“The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council,” the statement read.
It added, “The Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.”
The Dangote Refinery, considered a major beneficiary of this initiative, has been at the center of government efforts to domesticate fuel production. Tuesday’s meeting between Finance Minister Wale Edun and refinery representatives reviewed progress on the policy’s rollout and discussed lingering implementation issues.
As expectations rise for further reductions in petrol prices, industry stakeholders are hopeful that continued support for local refineries will eventually translate to significant relief for consumers at the pump.
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