The Dangote Petroleum Refinery and Petrochemicals has consistently slashed the price of Premium Motor Spirit (PMS), or petrol, yet pump prices across the nation stubbornly remain elevated. Daily Trust’s in-depth analysis reveals that despite six price reductions by the refinery this year, totaling a significant N195 per litre, the cost of fuel continues to bite hard into household budgets.
Just yesterday, the refining giant announced its latest move, a N15 per litre reduction, setting new prices at N875 in Lagos, N885 in the South West, N895 in the North West and North Central, and N905 across the South East, South South, and North East. These prices, according to Dangote, are to be implemented by its extensive network of partners, including major players like MRS, AP (Ardova), Heyden, Optima Energy, Techno Oil and Hyde.
The refinery has actively championed President Bola Tinubu’s “Nigeria First” policy, urging other marketers to join its ranks and prioritise locally produced goods and services. Indeed, since commencing operations, Dangote Refinery has presented a narrative of consumer relief through repeated price cuts.
A review of Dangote’s pricing strategy in 2025 shows a determined effort to bring down costs. February alone saw two significant price reductions, totaling N125 per litre. This was followed by another N45 per litre cut in April. Beyond petrol, the refinery has also made strides in lowering prices for diesel and Liquefied Petroleum Gas (LPG), aiming to improve affordability across various sectors.
However, the Daily Trust investigation highlights a glaring disconnect between the refinery’s ex-depot prices and what Nigerians are actually paying at the pump. While Dangote has reduced its ex-depot price by N195 since January (from N970 in December 2024 to N825 in February, with subsequent fluctuations), the current pump price of N875 in Lagos is still higher than the N865 recorded in March.
It’s a rollercoaster of prices. Recall that in January, the refinery had an upward review, setting its price at N955 per litre at the loading gantry, before a “holiday bonanza” in December 2024 saw it cut to N899.50. February then brought substantial relief with two cuts, bringing the ex-depot price down to N825 per litre, leading to pump prices of N860-N865 in Lagos.
The Naira-for-Crude Conundrum
March, however, presented a setback. The temporary suspension of the “Naira-for-Crude” arrangement with the Nigerian National Petroleum Company Limited (NNPCL) led to an immediate price surge, pushing petrol to N930 per litre in Lagos. This decision, according to Dangote, was necessary to avoid a mismatch between sales proceeds and crude oil purchase obligations, which are largely denominated in US dollars.
April saw a partial recovery with two reductions, bringing the gantry price from N865 to N835. Yet, despite these efforts, the current price of N875 remains stubbornly above the March benchmark.
Compounding the consumer’s woes is the reluctance of many filling stations to adjust their prices promptly. As of reporting, many outlets in Lagos continue to sell petrol between N890 and N910 per litre. This delay is understandable from the marketers’ perspective, who are expressing mixed feelings and frustration over the “short notice” of price changes.
Chinedu Ukadike, Publicity Secretary of the Independent Petroleum Marketers’ Association of Nigeria (IPMAN), described the situation as a “lose-win” for marketers. “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 lamented. Anonymous marketers also voiced concerns about the financial implications of sudden price cuts, with reports of billions of naira lost in April alone.
The National Bureau of Statistics (NBS) provides a stark confirmation of the national price reality. Their latest “Premium Motor Spirit (Petrol) Price Watch” for April 2025 reveals that the average retail price of petrol across Nigeria surged by a staggering 76.73% year-on-year to N1,239.33, compared to N701.24 in April 2024. While there was a marginal 1.77% drop from March 2025 (N1,261.65), the overall upward trend is undeniable.
Regional disparities are also pronounced, with Imo State recording the highest average at N1,588.50, followed by Jigawa and Sokoto. Yobe, Kwara, and Osun offered the lowest prices. The South East continues to bear the brunt of high prices, averaging N1,341.71, while the South West enjoys the lowest zonal average at N1,138.64.
Dangote Refinery maintains its commitment to price stability and Nigeria’s energy security, crediting the “Naira-for-Crude Initiative” for enabling its price reductions. The refinery also assures a consistent supply of products, aiming for self-sufficiency and even export opportunities.Yet, as consumers grapple with rising living costs, the gap between refinery efforts and pump realities remains a significant challenge for Nigeria’s economic landscape.(DailyTrust)