Despite Dangote's Multiple Price Cuts, Petrol Costs Still on High Side

• Dangote Refinery has implemented multiple price cuts on petrol throughout 2025, reducing prices to improve affordability across Nigeria
• Despite these efforts and recent reductions to as low as N875 per litre in Lagos, petrol prices remain relatively high
• Marketers have raised concerns over sudden price changes affecting their profit margins, while the refinery reassures of a stable supply

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.

Despite repeated price cuts by Dangote Petroleum Refinery, the cost of Premium Motor Spirit (PMS), popularly known as petrol, remains relatively high across Nigeria.

The refinery recently announced another N15 reduction in the price of its premium petrol, bringing the cost to N875 per litre in Lagos, with regional variations ranging from N885 in the South West to N905 per litre in the South East, South South, and North East.

These prices apply through its network of partners such as MRS, Ardova (AP), Heyden, Optima Energy, Techno Oil, and Hyde.

Dangote multiple petrol price slashes

Dangote Petroleum Refinery has continually implemented price-cutting measures since it began operations, aiming to provide Nigerians with more affordable petroleum products.

Earlier in 2025 alone, the refinery reduced petrol prices by a cumulative N195 per litre. For example, in February 2025, the refinery cut petrol prices twice, resulting in a combined N125 reduction, followed by further cuts of about N45 per litre in April.

Other petroleum products like diesel and Liquefied Petroleum Gas (LPG) have also seen significant price decreases, enhancing affordability in transportation, industry, and domestic energy use.

However, despite these efforts, petrol prices remain elevated compared to historical levels. In January 2025, Dangote increased its petrol price to N955 per litre at the loading gantry, though this was later reduced.

The refinery’s ex-depot price declined from N950 in January to N825 in late February, marking a sharp drop within less than a month.

Despite these reductions, March saw an increase in petrol prices following the suspension of the naira-for-crude oil arrangement with the Nigeria National Petroleum Company Limited (NNPCL).

This led to petrol selling at N930 per litre in Lagos, up from the previous N865.

The refinery reduced prices twice in April, bringing the gantry price down from N880 to N835 per litre, and recently further cut prices in May.

Despite these cuts, current prices are still above the levels seen in March, with filling stations reportedly yet to fully adjust, still selling petrol between N890 and N910 per litre in Lagos.

Marketers concerned about price cuts

According to Daily Trust, marketers have expressed concern about the frequent and sudden price changes, which they say cause financial losses and margin squeezes.

The Publicity Secretary of the Independent Petroleum Marketers’ Association of Nigeria (IPMAN), Chinedu Ukadike, warned that independent marketers face a challenging “lose-win” situation amid this price volatility.

He said:

“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.”

Dangote Petroleum Refinery reaffirmed its commitment to supporting Nigeria’s economy and energy security by refining petroleum domestically and emphasised its alignment with President Bola Tinubu’s Nigeria First policy and Renewed Hope Agenda.

The refinery also assured the public of a consistent petrol supply, sufficient reserves for local demand, and surplus for export to boost foreign exchange earnings.

States where residents paid more for petrol

Meanwhile, Legit.ng earlier reported that the average retail price of petrol surged by 76.73% year-on-year to N1,239.33 in April 2025, despite a slight 1.77% dip from March’s N1,261.65.

According to the National Bureau of Statistics (NBS), prices vary significantly by state, with Imo, Jigawa, and Sokoto recording the highest average prices, while Yobe had the lowest.

Regional disparities persist, with the South East experiencing the highest average petrol prices and the South West the lowest, highlighting ongoing volatility in fuel pricing despite recent price moderation efforts.

Source: Legit.ng