Dangote Refinery Slashes Petrol Price to N865 Amid FX, Policy Push

Dangote Refinery Slashes Petrol Price to N865 Amid FX, Policy Push

The price of petrol has dropped again, and this time, it’s from the private sector, not the government.

The Dangote Petroleum Refinery and Petrochemicals, located in Ibeju-Lekki, Lagos, has reduced the ex-depot price of petrol to N865 per litre, down from N880 per litre. That’s a N15 price cut. This change happened on Thursday, April 10, 2025, and it’s expected to cause ripples across petrol stations nationwide.

Now, if you’re wondering what “ex-depot” means, here’s a quick breakdown. It’s the price at which oil marketers buy petrol directly from the refinery before it’s transported to your local filling station. This reduction, though slight, signals the first major price move from Africa’s biggest refinery since it started selling petrol to the Nigerian market.

A senior Dangote Group official confirmed this latest price adjustment in a chat with Nairametrics. The decision is expected to influence pump prices at retail stations owned by partners like MRS Oil and Gas, Ardova, Heyden, and others.

Whether or not it translates to cheaper petrol for everyday Nigerians depends on how these companies pass the savings on to consumers. Some marketers may adjust their prices, while others may not be as quick.

But why the sudden drop in price?

It comes just 24 hours after the Federal Government finally gave the green light for a delayed deal: the Naira-for-Crude Oil initiative.

This policy allows refineries like Dangote’s to buy crude oil from the Nigerian National Petroleum Company (NNPC) in Naira, instead of the usual U.S. dollars. For a country struggling with dollar shortages, this deal is a game changer.

Let’s be real—Nigeria has a foreign exchange crisis on its hands. The Naira is under heavy pressure, and the government needs every possible method to reduce its dependence on foreign currency. By allowing crude to be sold in local currency, Nigeria keeps more dollars in the reserves and avoids unnecessary exchange rate shocks.

On Tuesday, April 8, 2025, the government made it clear—the Naira-for-Crude deal is here to stay. This isn’t a temporary gimmick, they said, but a long-term strategy for energy security and economic stability.

The high-level update on this plan was chaired by Mr. Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy. He also chairs the Implementation Committee overseeing the rollout.

Also present at the meeting were major players in Nigeria’s oil and gas sector. Zacch Adedeji, who heads the Federal Inland Revenue Service (FIRS), was there. So was Mr. Dapo Segun, the Chief Financial Officer of NNPC Limited. You also had representatives from NNPC Refineries, NNPC Trading, Dangote Refinery, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Ports Authority (NPA), and Afreximbank.

These stakeholders came together to iron out implementation issues and track the progress of the Naira-for-Crude deal.

So, what changed?

For context, a few weeks ago, marketers across Nigeria were selling petrol at between N930 and N970 per litre. Prices had gone up from the previous average of N865 per litre. The reason? Increased landing cost.

Landing cost is the total expense it takes to import petrol and make it available at depots. Marketers said this cost jumped by N88 per litre in just one week. And yes, you guessed it—this was due to higher import bills and unstable forex rates.

To make matters worse, the Dangote Refinery, on March 19, 2025, announced it was stopping the domestic sale of petrol in Naira. This was after NNPC paused the Naira-for-Crude arrangement temporarily.

At the time, Dangote’s reasoning was simple: if they were forced to buy crude in dollars but sell fuel in Naira, they’d lose money. It was a mismatch they couldn’t sustain.

But NNPC quickly clarified the situation. They explained that the deal was always meant to be a six-month pilot. The first phase had simply come to an end in March 2025, and they were evaluating results before launching phase two.

Well, that evaluation must have gone well, because here we are—Naira-for-Crude is back on track, and Dangote has returned to domestic sales in Naira. The result? A price cut, even if it’s just N15 for now.

But will this actually bring any meaningful relief to Nigerians?

Let’s be honest—N865 per litre is still expensive. For a country where the minimum wage is just N30,000 per month, many people still find themselves spending a significant portion of their income on transportation alone.

However, the move does hint at something bigger.

It shows that when local refining works, Nigeria can reduce its dependence on imported fuel. It can also create room for price competition and possibly lower costs in the future. That’s something we’ve not seen in decades.

And don’t forget, Dangote Refinery is not your average oil plant. It’s the largest single-train refinery in the world, with the capacity to refine 650,000 barrels per day. The $20 billion facility was designed to put an end to Nigeria’s decades-long reliance on foreign refineries.

If the refinery ramps up to full capacity—and the Naira-for-Crude deal continues—it could reshape the entire energy market in Nigeria.

Also, note that the refinery doesn’t just process petrol. It also produces diesel, aviation fuel, kerosene, polypropylene, and fertilizer, among other products. So the spillover effects go beyond just the fuel you buy at your local station.

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Looking forward, market experts believe more price adjustments will follow. Especially if global crude oil prices remain stable and local refining gains traction.

One source familiar with the refinery’s operation hinted that further price reductions could be possible, especially if the Federal Government continues to provide Naira-denominated crude and helps stabilize the forex market.

Another key point is distribution and retail pricing. Right now, most of the petrol pumped out by Dangote still goes through independent marketers and major oil marketers. These groups control retail prices, so the full benefit of a drop in ex-depot price might take a while to reach consumers.

And there’s politics too. The Federal Government knows fuel prices are a sensitive issue. Any major spike causes public outcry. So, officials are likely to work closely with major refineries like Dangote’s to ensure that fuel remains available—and relatively affordable.

Of course, the larger question remains: Will this lead to a consistent downward trend in petrol prices?

That depends on a few big factors:

• Stability of the Naira
• Availability of crude oil locally
• Full enforcement of the Naira-for-Crude deal
• Local refining at scale
• Transport and distribution costs

Right now, this price cut is a small but important step in the right direction.

To summarize:

• Dangote Refinery has reduced petrol’s ex-depot price to N865.
• The Naira-for-Crude agreement with the FG has been fully reinstated.
• Oil marketers may reduce pump prices slightly in the coming days.
• The FG says the policy is part of a long-term solution, not a temporary fix.
• Dangote’s refinery is playing a central role in this new energy roadmap.

Let’s hope this momentum continues—because Nigerians have been waiting for real relief at the pumps for a long, long time.