Dangote Refinery Cuts Petrol Price to ₦1,250/L, Changes Pricing System, Names 25 Marketers
- Dangote Refinery reportedly cut its petrol loading price to ₦1,250 per litre, linking rates to international gasoline prices
- About 25 marketers remain in the refinery’s distribution consortium, down from 37
- The new loading price does not guarantee cheaper petrol at filling stations, where transport costs and margins still apply
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Dangote Petroleum Refinery has reportedly reduced its petrol loading price to ₦1,250 per litre after abandoning its fixed gantry pricing arrangement in favour of a system linked to international gasoline prices.
The development comes amid growing competition in Nigeria's downstream petroleum market, where refiners, importers and depot operators are adjusting prices in response to changing global oil market conditions.
Source: UGC
According to industry sources, the new pricing arrangement took effect on Saturday, November 7, 2026, alongside a restructuring of the refinery's marketing consortium.
Dangote changes petrol pricing system
Under the revised arrangement, Dangote Refinery has returned to the European Blendstock for Oxygenate Blending (EBOB) benchmark, which tracks international gasoline prices.
The refinery previously used a five-day average of the benchmark to determine petrol prices before switching to a fixed gantry rate of ₦1,300 per litre.
The latest adjustment represents a ₦50 reduction from that fixed price, equivalent to approximately 3.85%.
Unlike fixed pricing, the EBOB-linked system allows fluctuations in international gasoline prices to influence the refinery's domestic selling rates, according to a report by PetroleumPriceNG.
This means petrol prices could rise or fall depending on global market movements.
However, Automotive Gas Oil (AGO), commonly known as diesel, reportedly remains under the refinery's fixed gantry pricing arrangement.
Dangote reduces marketers from 37 to 25
Beyond the pricing adjustment, Dangote Refinery has reportedly reduced the number of marketers participating in its distribution consortium from 37 to approximately 25.
An industry source attributed the restructuring to concerns that some consortium members were contributing to downward pressure on petrol prices.
The refinery subsequently reviewed the arrangement, removing some participating companies.
However, there has been no official confirmation that the reduction in membership directly influenced the latest petrol price adjustment.
The 25 marketers reportedly retained include NIPCO, MRS, Ardova, Fagbem, Masters, Bovas, Optima, Nepal Energies, Mainland, NNPC, Sobaz, Northwest and Danmarna.
Others are A.A. Rano, Rainoil, Pinnacle, AYM Shafa, Salbas, Heyden, Eterna, TotalEnergies, Bongas, Soroman, Pivot and Techno Oil.
Source: Getty Images
What the new petrol price means for Nigerians
The return to benchmark-linked pricing could introduce more frequent adjustments to wholesale petrol prices, particularly when international gasoline quotations fluctuate.
For marketers, the arrangement may create opportunities to purchase petrol at lower rates when global prices decline.
However, Nigerians should not expect an automatic reduction to ₦1,250 per litre at filling stations.
The reported figure represents the refinery's loading price, excluding transportation, distribution expenses and marketers' margins.
Consequently, retail petrol prices may continue to vary across Lagos, Abuja, Port Harcourt and other cities.
The development nevertheless raises expectations that increased competition and declining international product prices could eventually translate into lower pump prices for consumers.
High PMS price: FCCPC warns Dangote, marketers
Legit.ng earlier reported that the Federal Competition and Consumer Protection Commission (FCCPC) has issued a fresh warning to petroleum refiners and marketers over high petrol and diesel prices despite declining crude oil prices in the international market.
The warning comes as Nigerians continue to pay between ₦1,325 and ₦1,420 per litre for petrol, raising concerns about why falling global oil prices have yet to translate into significant relief at filling stations.
Source: Legit.ng
