Fuel still cost high in filling stations despite six times price reduction by Dangote refineries—-Analysis

Despite consistent reduction in price of premium motor spirit (PMS) otherwise known as petroleum by Dangote Petroleum Refinery and Petrochemicals, the price of the product remains very high, analysis has shown.

Yesterday, the refinery announced another reduction of N15 in the price of its high-quality Premium Motor Spirit (PMS), reports Daily Trust.

As a result of this reduction, Nigerians will now purchase the product at the following prices: N875 per litre in Lagos; N885 per litre in the South West; N895 per litre in the North West and North Central, while it will be sold for N905 per litre in the South East, South South, and North East.

In a statement, it said the prices will apply through all its partners, including MRS, AP (Ardova), Heyden, Optima Energy, Techno Oil, and Hyde.

The refinery called on other marketers to join its expanding network of partners to demonstrate their support for President Bola Tinubu’s Nigeria First policy, which advocates for the prioritisation of locally-produced goods and services.

Catalogue of price cuts

Since the commencement of operations, Dangote Petroleum Refinery has consistently implemented cost-reduction strategies which it stated was aimed at “delivering tangible savings to Nigerians.”

In February 2025, the company carried out two price reductions on petrol, resulting in a total decrease of N125 per litre. This was followed by a further reduction of approximately N45 per litre in April.

Additionally, the prices of other key products, such as diesel and Liquefied Petroleum Gas (LPG), have been significantly lowered, improving affordability across transportation, industrial, and domestic energy sectors.

Despite reduction, prices remain high

Our correspondent reports that in spite of the reduction in prices by Dangote, the prices remain on the high side.

So far, analysis by our correspondent indicated that Dangote has reduced prices at different times in 2025 amounting to N195.

It would be recalled that in January, the Refinery announced an upward review of the price, saying its refined product would now sell at N955 per litre at the loading gantry.

Dangote had earlier in December, 2024 slashed its price from N970 per litre to N899.50 in what it described as a holiday bonanza.

The refinery stated that marketers buying between 2 million – 4.99 million litres will now buy at N955 per litre while 5 million litres & above will buy at N950 per litre.

However, on February 1, the refinery undertook a significant price reduction, slashing the price by N60 to N890 at the ex-depot price.

On February 26, it slashed the price again, now the second time in a month, cutting N65 off the previous price of N890, bringing it down to N825 per litre at the gantry (ex-depot).

The ex-depot price thus decreased from N950 per litre in January to the current price of N825 per litre, representing a reduction of N125 per litre within 26 days.

According to a statement issued at the time, the price reduction will also ensure that Nigerians pay between N860 and N865 per litre for petrol at the pump in Lagos.

March saw price increase

March saw a significant increase in price reduction by Dangote refinery following the stoppage of naira-for-crude arrangement with the Nigeria National Petroleum Company Limited (NNPCL).

It would be recalled that the refinery had on March 19, 2025, announced that it will stop the domestic supply of petrol in naira due to the suspension of the naira for crude by the NNPC.

It stated that the temporary decision is necessary to avoid a mismatch between its sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.

This subsequently shot up the price of PMS with a litre selling at N930 per litre in Lagos as against the former price of N865.

In April, it reduced the price twice. On April 16th, 2025, the gantry price (ex-depot price) of petrol was reduced from N865 to N835.

Earlier in the same month, the refinery slashed the price from N880 to N865 per litre.

With the reduction in May, the refinery has reduced prices by N195 in 2025 alone. However, the present price of N875 is still highehr compared to the price in March which was N865.

Filling stations yet to adjust prices

As of the time of filing this report, filling stations were yet to adjust their prices as a litre is still sold between N890 and N910 in Lagos.

This is even as marketers while welcoming the price reduction expressed mixed feelings over what they called the short notice.

In April when Dangote effected price reduction twice, marketers reportedly lost billions of naira over what they called the sudden price cut.

The Publicity Secretary of the Independent Petroleum Marketers’ Association of Nigeria (IPMAN), Chinedu Ukadike warned that marketers face a lose-win situation over the ongoing price war.

“For us, the independent marketers, it is a lose-win situation.

“The loss is that those who have already gotten petrol products from Dangote Refinery or its partners will have to lose a N20 to N25 margin per litre and revert to the new price,” he said.

Another marketer who spoke with our correspondent on the condition of anonymity stated that the short-term reduction is a cause for concern.

Dangote Petroleum Refinery recently reassured Nigerians of price stability despite fluctuations in global crude oil prices, reaffirming its commitment to supporting Nigeria’s economy.

“By refining petroleum products domestically at the world’s largest single-train refinery, we are proud to make a substantial contribution to Nigeria’s energy security, foreign exchange savings, and overall economic resilience—aligning with President Bola Tinubu’s Renewed Hope Agenda, which focuses on addressing the nation’s economic challenges and improving the well-being of Nigerians. “We are immensely grateful to His Excellency, President Bola Tinubu, for making this possible through the commendable Naira-for-Crude Initiative, which has enabled us to consistently reduce the price of petroleum products for the benefit of all Nigerians,” it stated.

Dangote Petroleum Refinery further assures the public of a consistent supply of petroleum products, with sufficient reserves to meet domestic demand, as well as a surplus for export to enhance the country’s foreign exchange earnings.

Price of petrol increased by 76.73% – NBS

Meanwhile, the average retail price paid by consumers for Premium Motor Spirit (PMS), commonly known as petrol, rose to N1,239.33 in April 2025, reflecting a 76.73% year-on-year increase compared to N701.24 recorded in April 2024, according to the National Bureau of Statistics (NBS)

The Bureau however, said the price dropped by 1.77% when compared to the N1,261.65 average price recorded in March 2025.

This information is contained in the latest “Premium Motor Spirit (Petrol) Price Watch” released by the National Bureau of Statistics (NBS) on Wednesday.

On state analysis, it stated that Imo State recorded the highest average retail price of PMS at N1,588.50, followed by Jigawa and Sokoto States with N1,567.84 and N1,550.00, respectively.

On the other end, Yobe had the lowest average price at N970.00, with Kwara and Osun States following at N1,014.85 and N1,042.49, respectively.

“At the zonal level, the South East recorded the highest average price of N1,341.71, while the South West posted the lowest average at N1,138.64.

The report demonstrates the continued volatility in fuel pricing across regions, despite recent interventions aimed at stabilizing the downstream petroleum sector.