Dangote Refinery Reduces Petrol and Diesel Prices

…Main Insights and Prospective Outlook

Dangote Petroleum Refinery and Petrochemicals has announced adjustments to petrol and diesel prices in response to the recent drop in global oil prices, which fell from $115 to $90 per barrel on Monday.

According to a pricing template shared on Tuesday, the gantry price of petrol has been reduced by ₦100, moving from ₦1,175 to ₦1,075 per litre.

For coastal supply, the price per litre has been set at ₦1,050, reflecting additional maritime distribution costs. Similarly, the ex-depot price of Automotive Gas Oil (diesel) has been lowered from ₦1,620 to ₦1,430 per litre, signifying a reduction of ₦190 per litre.

However, the refinery clarified that these prices exclude regulatory charges imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). It’s worth noting that earlier this month, Dangote Refinery had raised its gantry petrol price to ₦1,175 per litre—marking the third price increase within a week.

The revised ex-depot prices were communicated to marketers and depot operators, showing an upward adjustment of ₦180 from ₦995 per litre last Friday, which translates to an 18.1% increase over three days.

Main Insights and Prospective Outlook  

• Price Adjustments: The gantry and coastal price reductions follow a decline in global crude oil prices, easing cost pressures slightly after sustained volatility in energy markets.

• Projected Pump Prices: Despite the reductions, retail pump prices for petrol are anticipated to hover above ₦1,000–₦1,050 per litre across different regions of Nigeria.

• Market Implications: This announcement comes amid market disruptions caused by a temporary halt in petrol loading at the refinery on March 2, 2026, tied to earlier cost hikes.

•  Future Expectations: While Dangote Refinery aims to bolster domestic fuel security, consumers should prepare for further fluctuations driven by global crude oil price trends.

• Competition Dynamics: To balance supply and pricing pressures, the government plans to continue issuing import licenses—about 47 to 50 licenses for Q1 2026—to other marketers.

This increased competition may influence future pricing strategies from Dangote Refinery. As these developments unfold, public focus remains on how market players and regulators will address price stability and supply concerns in the coming months.