Dangote Refinery Crashes Petrol Prices by N200 Per Litre in 2025, Ends Year Lower
- The mega Dangote Refinery has had a dramatic year in Nigeria’s petroleum industry, with significant price drops
- In the outgoing year, the refinery handed Nigerians about N200 per litre worth of petrol price cuts
- This marks one of the sharpest sustained price compressions in recent years and highlights how local refining is reshaping fuel dynamics
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Dangote Petroleum Refinery has closed 2025 with a dramatic year-on-year reduction in petrol prices, cutting its ex-depot rate by ₦200.50 per litre and reinforcing its growing influence over Nigeria’s downstream market.
The move marks one of the sharpest sustained price compressions in recent years and highlights how local refining is reshaping fuel economics.
Source: UGC
₦200 per litre cheaper in 12 months
Data compiled from Petroleumprice.ng show that on December 19, 2024, Dangote Refinery sold premium motor spirit (PMS) at an opening ex-depot price of ₦899.50 per litre, following an earlier adjustment from ₦970 per litre.
Exactly one year later, the refinery ended 2025 with PMS priced at ₦699 per litre after implementing a fresh ₦129 per litre cut on December 12, 2025.
The cumulative movement from ₦899.50 to ₦699 represents a ₦200.50 decline, equivalent to a 22.3 per cent drop within a single year.
The scale and consistency of the reductions underscore Dangote Refinery’s aggressive push to anchor petrol prices lower through domestic supply.
A year of sustained price compression
Unlike the sporadic price swings that often follow global crude oil shocks or exchange-rate volatility, Dangote’s cuts have followed a sustained downward trend.
Industry analysts attribute the pattern to local refining advantages, reduced import exposure, logistics efficiencies, and economies of scale.
The most recent reduction alone translated to a 15.58 percent drop between November and December 2025, signalling intensified competition as the year closed. In key consumption hubs such as Lagos and the wider South-West,
Dangote’s ex-depot price has increasingly become the reference point for both depot and pump prices.
Mounting pressure on import-dependent marketers
The steady slide in Dangote’s pricing has placed significant pressure on marketers that rely heavily on imported petrol.
Many private depots have been forced into rapid price realignments to retain market share, while others continue to sell at higher levels due to legacy stock purchased at earlier, more expensive rates.
Industry sources say the ₦699 per litre ex-depot price has effectively become both a psychological and commercial ceiling.
Marketers unable to match or closely track that benchmark risk losing volumes as buyers gravitate toward cheaper locally refined supply.
Dangote launches hotline to enforce pricing
To reinforce compliance, Dangote Refinery has also rolled out a dedicated hotline for reporting filling stations that sell PMS above approved rates, particularly those supplied through its distribution channels.
According to a report by PetroleumPriceNG, the move is aimed at curbing price arbitrage and ensuring that the benefits of lower ex-depot pricing reach end users.
Redefining Nigeria’s petrol market
From an opening price near ₦900 per litre to a year-end close at ₦699, Dangote Refinery’s 22 per cent price reduction goes beyond headline numbers.
It signals a deeper transition away from import parity pricing toward a market increasingly shaped by domestic refining costs.
As 2025 draws to a close, the refinery’s pricing trajectory suggests that local refining is no longer merely supplementing Nigeria’s petrol supply.
Source: Getty Images
It is steadily redefining pricing behaviour, competition dynamics, and the future structure of the downstream market.
Dangote tells Nigerians to reject overpriced petrol
Legit.ng earlier reported that Aliko Dangote has sent a firm message to Nigerians and fuel marketers following the latest reduction in petrol prices, urging consumers not to pay more than ₦739 per litre at MRS Oil Nigeria Plc filling stations nationwide.
The directive follows the commencement of nationwide Premium Motor Spirit sales by Dangote Petroleum Refinery at the new price point, a move aimed at easing cost pressures on households and businesses.
To back its stance, the refinery has launched a dedicated consumer hotline, allowing Nigerians to report any MRS station selling petrol above the approved price.
Source: Legit.ng
