Dangote Refinery Slashes Petrol Loading Cost to N865

Petroleum marketers across Nigeria are predicting a nationwide drop in petrol prices following the Dangote Refinery’s decision to resume sales in Naira and reduce its loading cost to N865 per litre. This comes just 22 days after the refinery suspended sales in the local currency.

With a capacity of 650,000 barrels per day, the Dangote Refinery announced the price cut from the previous rate of N880, a move expected to ease pressure on depot pricing and ultimately reflect at the pump. The new rate also includes all regulatory charges from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, according to official notices and price confirmations on petroleumprice.ng.

The development follows the Federal Executive Council’s approval of the full implementation of the Naira-for-Crude agreement, which aims to enhance Nigeria’s energy security and reduce dependence on foreign exchange for petroleum transactions.

The Ministry of Finance reaffirmed that this policy is a permanent strategic initiative designed to encourage domestic refining, attract investment, and stabilize the local fuel market.

“The Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market,” the ministry stated.

Marketers such as MRS Oil & Gas, Ardova Plc, and Heyden—all with supply agreements with Dangote Refinery—are expected to adjust their pump prices to around N910, in line with the reduced ex-depot rates.

While many Nigerians have welcomed the price drop, some marketers have expressed concerns. Companies that purchased large volumes at the previous rate of N880 are now facing the prospect of selling at a loss.

“We are relieved, although it’s a mixed one,” said Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN). “The new price will help us buy more and sell faster, but we still have mixed feelings because some of us are currently selling at a loss.”

Despite the temporary strain on some operators, IPMAN Vice President, Hammed Fashola, described the development as a welcome one.

“It is a good move. This is what we’ve been advocating for—sustained local pricing in Naira. It will bring down prices and create market stability, which is beneficial to Nigerians,” Fashola said.

Industry expert Olatide Jeremiah also noted that the policy has reignited healthy competition in the downstream sector.

“Private depots will need to stay competitive as Dangote’s pricing reshapes the market. The Naira-for-Crude policy and recent oil price adjustments offer another chance for Nigerians to access more affordable fuel—provided the retail outlets don’t inflate prices for excessive profit.”

As the Dangote Refinery ramps up supply and stakeholders align with the federal government’s policy direction, Nigerians may soon begin to see the effects at filling stations nationwide.