In a bold and highly significant move for Nigeria’s downstream energy sector, the Dangote Petroleum Refinery has announced a major reduction in its petrol price, setting a new ex-depot (gantry) rate at ₦699 per litre — a drop of ₦129 from the previous ₦828 level.
This price adjustment took effect on December 11, 2025, and marks approximately the 20th petrol price review by the refinery this year, underscoring an aggressive pricing strategy aimed at stabilising domestic fuel costs and intensifying competition with imported petrol.
Why This Price Cut Matters
Dangote Refinery’s latest decision is more than just a numerical decrease — it reflects a strategic effort that has far-reaching implications for Nigeria’s fuel economy:
🔹 Direct Relief to Consumers
With petrol benchmark prices now significantly lower at the refinery level, there’s growing optimism that retail pump prices will follow suit, ultimately reducing transportation and logistics costs for everyday Nigerians. This could translate into tangible savings for commuters and businesses alike during the busy festive travel period.
🔹 A Strategic Push Against Imports
By lowering petrol prices substantially, Dangote Refinery is positioning itself to undercut imported fuel, challenging the historical dominance of imported Premium Motor Spirit (PMS) in the Nigerian market. This could reduce import dependence and help mitigate forex pressure associated with fuel imports.
🔹 Increased Market Competition
This pricing move is expected to trigger price adjustments across private depots and marketers nationwide. Early data from market trackers suggests some depots have already aligned their ex-depot rates downward following Dangote’s lead, indicating a broader market recalibration.
Context: Ongoing Price Adjustments in 2025
The latest N699 per litre price represents a significant reduction compared with earlier in the year. Dangote Refinery’s continued revisions — including cuts from higher price points such as N828 and beyond — underline a deliberate strategy of pricing responsiveness rather than static pricing.
This proactive pricing stance also comes after Dangote Chairman Aliko Dangote reaffirmed the company’s commitment to reasonable and competitive pricing, emphasizing the importance of domestic production in cushioning local fuel costs despite global market volatility and ongoing challenges like smuggling.
Industry Effects and Forward Outlook
While the price cut has been broadly welcomed by consumers, there are early concerns from some retailers and marketers who have stock bought at higher prices, suggesting potential short-term market disruptions. However, as the supply landscape continues to evolve, such adjustments could catalyse further efficiency and competitiveness in the sector.
In the long term, Dangote Refinery’s pricing strategy may help:
- Drive down pump prices nationwide
- Encourage more refined local supply
- Reduce Nigeria’s dependence on fuel imports
- Support economic activities tied to lower logistics costs
Conclusion
Dangote Refinery’s significant petrol price reduction to ₦699 per litre is a watershed moment for Nigeria’s energy market. It highlights a confidence in domestic refining capacity and offers a blueprint for how strategic pricing can reshape a fuel-dependent economy. As implementation continues and the impacts unfold, stakeholders — from motorists to policymakers — will be watching how this bold pricing strategy translates to real-world benefits across Nigeria.
References
- Dangote Refinery cuts petrol gantry price to ₦699, marks 20th price adjustment in 2025 — The Guardian Nigeria (latest announcement of the N699 ex-depot price). The Guardian Nigeria
- Dangote Refinery slashes petrol price to N699 from N828 per litre — ARISE TV (details of the N129 drop ahead of the festive season). Arise News
- Relief as Dangote cuts petrol to N699/litre — BusinessDay Nigeria (discusses market impact and timing). Businessday NG
- Dangote Refinery cuts petrol price by 16%, pegs gantry price at N699/Litre — THISDAYLIVE (context on competition with importers and remarks from Dangote). ThisDayLive
- BREAKING: Dangote refinery reduces petrol price to N699/litre — Tribune Online (straight reporting on the price change)
