Petrol Price Reduction: Nigerians to Pay N935 Per Litre as Dangote Refinery Adjusts Pricing







In a move set to impact petrol prices across Nigeria, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a new pump price of N935 per litre. This development comes after the Dangote Refinery introduced a revised pricing structure, reducing the ex-depot price of petrol to N899.50 per litre. The adjustment is expected to provide relief to consumers, marking a significant shift in the dynamics of Nigeria’s downstream petroleum sector.

The New Pricing Structure

The recent price adjustment by the Dangote Refinery is part of its strategy to remain competitive in Nigeria's deregulated petroleum market. The ex-depot price—previously pegged at N970 per litre—has now been reduced to N899.50 per litre. This change allows petrol marketers to align their pump prices to the new cost structure.

IPMAN has indicated that with the inclusion of an N36 per litre logistics charge, petrol will now sell at N935 per litre nationwide. This marks a slight decrease from previous prices observed in many outlets, where petrol sold for as much as N980 per litre in Lagos and other major cities.

Key Drivers Behind the Price Drop

The reduction in petrol prices stems from increased competition in the downstream sector, particularly between the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Refinery. The market rivalry has intensified, with both entities vying for a greater share of Nigeria's petroleum supply chain.

Earlier, NNPCL slashed its petrol prices by 12%, signaling a race among industry players to attract marketers and consumers. According to Chinedu Ukadike, National Publicity Officer of IPMAN, “The fight to control market share between NNPCL and Dangote is healthy for Nigerians.” This competition, he explained, is a key feature of the country’s deregulated market, revealing the true cost of petrol production and logistics.

Market Trends and Pump Prices

Prior to the adjustment, pump prices across Nigeria varied widely. In Lagos, petrol was sold between N950 and N980 per litre at major outlets like MRS, BOVAS, and NNPCL stations. However, IPMAN has assured consumers that with the new arrangement, prices will stabilize at N935 per liter across most retail outlets starting today.

This stabilization is expected to bring consistency to the market, reducing confusion among consumers about fluctuating prices.

Marketers Ready for Implementation

IPMAN has assured Nigerians of the readiness of its over 30,000 members to commence petrol loading at the revised prices. Members will source products from the Dangote Refinery and the Port Harcourt Refining Company, depending on their proximity to retail outlets.

  • Dangote Refinery Arrangements: Dangote’s pricing structure will be facilitated through MRS filling stations, ensuring seamless distribution.

  • NNPCL’s Role: NNPCL has also streamlined its loading processes, enabling marketers to source products efficiently from its numerous depots.

This dual-source arrangement will improve product availability, strengthen the supply chain, and ensure uninterrupted supply during the festive season and beyond.

The Role of Deregulation in Market Dynamics

Nigeria’s downstream petroleum sector operates under a deregulated framework, where market forces determine prices. This shift has encouraged transparency, competition, and innovation among players.

Ukadike highlighted the benefits of deregulation, stating that it unveils the actual cost of Premium Motor Spirit (PMS) production, including logistics. He further noted that competition between Dangote Refinery and NNPCL would ultimately benefit Nigerians, as it drives prices lower and ensures efficiency in the supply chain.

PETROAN’s Perspective on the Price Adjustment

The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has also endorsed the new pricing structure. According to PETROAN President Billy Gillis-Harry, this move will ensure widespread product availability and uniform pricing across the country.

PETROAN has begun registering its members with MRS filling stations to enable them to lift petrol from Dangote Refinery at the revised rates. Gillis-Harry emphasized that price adjustments would continue as competition intensifies, potentially leading to further reductions in pump prices.

Dangote Refinery: Operating at 85% Capacity

The Dangote Refinery has become a key player in Nigeria’s downstream petroleum sector. Operating at 85% capacity, the refinery currently produces 550,000 barrels of petrol daily, with plans to reach full capacity soon.

  • European-Standard Products: By January, the refinery aims to deliver petrol that meets European quality standards.

  • Challenges: The refinery has faced hurdles in securing sufficient crude oil locally but is committed to stabilizing supply through partnerships and strategic sourcing.

Edwin Devakumar, head of the Dangote Refinery, noted, “We aim to compete with European refiners and are progressing towards full capacity.”

Impacts of the Price Reduction

1. Consumer Benefits

The reduction in pump prices is expected to:

  • Alleviate financial strain on commuters and households.

  • Increase petrol consumption as affordability improves.

2. Healthy Competition

The rivalry between NNPCL and Dangote Refinery has fostered a competitive market, ensuring better pricing and services for Nigerians.

3. Strengthened Supply Chain

Efficient logistics and partnerships between marketers and refineries are expected to stabilize supply and prevent shortages, especially during the festive season.

4. Boost to the Economy

A more stable petrol market will likely encourage business growth, reduce operational costs for transport-dependent sectors, and support overall economic activities.

Looking Ahead: A Dynamic Market

As competition in Nigeria’s downstream petroleum sector continues to heat up, further price adjustments may be on the horizon. Both IPMAN and PETROAN have assured Nigerians of consistent supply and reasonable pricing, even during peak periods.

With Dangote Refinery’s efforts to improve capacity and NNPCL’s proactive measures to stay competitive, the benefits of deregulation are becoming increasingly evident. Consumers can look forward to a more stable, accessible, and affordable petrol market in the coming months.


The reduction of petrol prices to N935 per litre marks a significant milestone in Nigeria’s deregulated petroleum sector. It underscores the importance of competition in driving innovation, efficiency, and affordability.

As Nigerians adjust to the new pricing structure, the hope is that the trend of price reductions will continue, providing much-needed relief to consumers and fostering a thriving, competitive market.

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