Dangote Refinery Cuts Petrol Prices for Second Time in a Week
The Dangote Refinery has implemented another reduction in its ex-depot petrol price, bringing the cost down to N835 per litre.
This marks the second price decrease within a week, following an earlier adjustment that had already lowered prices.
The newest price point represents a N30 reduction from the N865 per litre rate established less than a week ago. When combined with the previous N15 decrease, the refinery has lowered its petrol prices by N45 from the initial N880 per litre rate in place earlier this month.
This 3.5% price reduction demonstrates the refinery’s ongoing efforts to improve fuel affordability in Nigeria, where energy costs remain a significant economic challenge for both businesses and households.
Despite these consecutive price reductions at the refinery level, consumers have yet to experience corresponding decreases at retail fuel stations. Pump prices across most regions in Nigeria have remained largely static, as distributors and marketers have not passed the savings on to end users.
Market observers suggest the refinery’s pricing strategy likely serves multiple objectives, such as establishing a stronger foothold in the domestic petroleum market, creating a competitive pressure against imported fuel alternatives and gradually influencing the overall fuel pricing structure in Nigeria.
The timing of these price adjustments coincides with shifting dynamics in the international oil market. Global crude prices have declined approximately 13% during April, settling around $64 per barrel. This downward trend has been attributed partly to emerging trade tensions affecting the global economic outlook.
As Africa’s largest petroleum processing facility with a 650,000 barrels-per-day capacity, the Dangote Refinery represents a transformative investment in Nigeria’s energy infrastructure. The facility’s domestic production capabilities offer several potential long-term benefits, including enhanced stability in fuel supply chains, reduced pressure on foreign exchange reserves previously used for imports and moderation of fuel prices as local refining capacity expands.
While the naira continues facing valuation challenges and global oil markets remain unpredictable, the refinery’s pricing decisions could potentially provide some economic relief for Nigerian consumers, provided these savings eventually reach the retail level.
Industry analysts will be watching closely to see whether these refinery-level price reductions eventually translate to meaningful changes at fuel stations across the country.
