Dangote Refinery reduces fuel prices again: What consumers needs to know
Dangote Refinery oil tankers for distribution of petrol across Nigeria. Photo Credit- Kalu Aja/X
In a significant move that may ease pressure on fuel prices nationwide, the Dangote Petroleum Refinery has once again reduced the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol. The new price is now ₦820 per litre, down from the previous ₦940, marking a fresh milestone in the refinery’s ongoing efforts to stabilize fuel supply and affordability in Nigeria.
Dangote Refinery Implements Fresh Fuel Price Slash
The announcement of the new petrol price was confirmed on Monday, July 8, 2025. This marks the second major reduction in recent weeks from Africa’s largest refinery, coming just weeks after an earlier price slash to ₦940 per litre. The refinery, owned by billionaire industrialist Aliko Dangote, is rapidly redefining the domestic fuel supply chain.
Industry sources indicate that the decision to reduce the ex-depot price was taken to stimulate increased distribution and align with fluctuating global crude prices. By setting the ex-depot price at ₦820, marketers and retailers may now be able to sell petrol at slightly more affordable rates to Nigerian consumers.
Relief for Consumers and Market Reactions
The new pricing is already triggering optimism across the downstream sector. Marketers say the price reduction could lead to a drop in retail pump prices across major cities, depending on logistics and distribution costs. This may offer much-needed relief to motorists and businesses struggling under the weight of rising inflation and energy costs.
Reactions from consumers and transport unions have been positive, with many hailing Dangote’s initiative as a patriotic gesture. “This move shows that local refining has great potential to help Nigerians,” said a fuel station manager in Lagos.
What the New ₦820 Price Means for Nigeria’s Oil Sector
The Dangote Refinery’s price cut is being viewed as a competitive edge against importation, which often comes with foreign exchange burdens. With local refining now contributing more substantially to the fuel market, experts believe Nigeria could gradually reduce its dependency on imported petroleum products.
The ₦820 per litre ex-depot price will serve as a new benchmark for fuel marketers sourcing from the Lekki-based refinery. It also underscores Dangote’s capacity to respond quickly to market dynamics while balancing profitability with national interest.
READ ALSO
Fuel prices fall across Nigeria: Will Dangote Refinery petrol price drop further?
Dangote Refinery reduces petrol price: What Nigerian consumers need to know
Dangote’s Growing Influence on Fuel Pricing
The Dangote Refinery began fuel distribution in 2024 and has steadily ramped up production capacity. Earlier in 2025, it delivered its first batches of diesel and aviation fuel, with PMS distribution gaining momentum shortly after.
Aliko Dangote, chairman of the Dangote Group, had previously expressed his commitment to making energy more accessible for Nigerians. “We are not just here to make profits. We want to transform lives and reduce Nigeria’s exposure to imported fuels,” he said in a recent press briefing.
Will Pump Prices Fall Nationwide?
Although the ex-depot price has been reduced, retail pump prices will vary depending on the transportation costs and profit margins set by filling stations. However, analysts say that if other refineries follow suit or supply increases significantly, there’s potential for downward pressure on pump prices in the near future.
For now, all eyes are on how quickly fuel stations adjust their pricing and whether consumers across urban and rural areas will feel the effect of this price revision.
The Dangote Refinery’s latest move sends a strong signal about its long-term plans for influencing the Nigerian oil market, one where pricing could become more predictable and driven by local supply capacity rather than global shocks or foreign exchange volatility.
