Nigerians are set to experience some economic relief as Dangote Refinery has announced a significant reduction in petrol prices, cutting depot rates to ₦828 per litre despite increasing global crude oil costs.
Price Reduction Details
The massive petroleum facility has slashed its gantry price for petrol from ₦877 to ₦828 per litre, representing a substantial ₦49 reduction per litre. This translates to a 5.6% price drop that comes as welcome news to consumers and marketers alike.
This price adjustment becomes even more significant considering the current global oil market conditions. Brent crude is currently trading at $64.23 per barrel while WTI stands at $60.30, with prices spiking due to renewed geopolitical tensions and Western sanctions targeting Russian oil exports.
Behind the Price Cut
Industry analysts attribute this unexpected price reduction to Dangote Refinery's strengthened crude supply arrangement with the Nigerian National Petroleum Company Limited under the naira-for-crude deal. This strategic partnership was specifically designed to alleviate foreign exchange pressures while ensuring consistent domestic crude supply to the refinery.
Market sources confirm that NNPC will supply approximately 650,000 barrels of crude daily to the refinery, covering December-loading shipments that include popular grades such as Amenam, Bonny Light, CJ Blend, Forcados, and Qua Iboe.
Market Impact and Diesel Concerns
According to industry monitoring platform PetroleumPriceNG, the price reduction is expected to provide much-needed relief to both fuel marketers and consumers following weeks of sustained high prices. Depot operators in Lagos have confirmed that loading at the new price commenced on Friday, November 7, 2025, with retail fuel stations expected to adjust their pump prices downward in the coming days.
However, while petrol prices are declining, diesel costs continue to maintain upward pressure on businesses and motorists. Dangote Refinery has increased its diesel gantry price from ₦910 to ₦950 per litre, reversing last week's brief price crash that resulted from temporary oversupply conditions.
Fresh market data reveals that diesel prices across major depots in Lagos, Warri, and Port Harcourt have climbed from an average of ₦919 per litre last week to ₦983, marking a 7% weekly increase. Major operators including Obat Oil, Integrated Oil, Pinnacle, Ibachem, and AIPEC have all aligned with Dangote's new pricing benchmark, creating additional financial pressure for transporters, manufacturers, and logistics companies.
Market analysts note that this development underscores Dangote Refinery's growing influence in stabilizing Nigeria's downstream petroleum market and its increasing capacity to shape nationwide pump price trends.
