In a move offering potential relief during the festive season, the Dangote Refinery has announced a reduction in the price of petrol. This development comes just days after the Nigerian National Petroleum Corporation (NNPC) also adjusted its rates downwards.
Price Adjustment Driven by Global Market Forces
The refinery has set a new ex-depot price of N840 per litre, down from the previous rate of N843. Energy analysts directly link this adjustment to a significant plunge in the international price of crude oil. Over the past weekend, the benchmark Brent crude averaged around $60 per barrel, creating downward pressure on refined products.
Adeola Yusuf, an energy policy expert, explained the market dynamics to Legit.ng. "Crude prices are dropping, and it would be unrealistic for refineries to maintain high rates in a deregulated market," Yusuf stated. He emphasized that in such a market, petrol prices are inherently unstable and must reflect international benchmark prices, making them highly susceptible to global volatility.
Depot Owners Scramble to Stay Competitive
The announcement from Dangote has triggered a swift reaction across the downstream sector. Depot operators, particularly in Lagos, are frantically revising their rates to remain competitive ahead of the expected Christmas travel rush.
Data from PetroleumPriceNG shows several major depots have already matched Dangote's new price. For instance, AIPEC and NIPCO are now also selling at N840 per litre. Other operators have made varying adjustments:
- Rainoil: N844 per litre
- Sigmund: N858 per litre
- Master Energy: N858 per litre
- Northwest: N850 per litre
OPEC+ Maintains Cautious Stance Amid Volatility
This local price movement occurs against a backdrop of strategic deliberations by global oil producers. On November 30, 2025, eight OPEC+ member countries convened to review market conditions.
The group reaffirmed its earlier decision to halt planned output increases for the first quarter of 2026, citing seasonal market sentiments. Furthermore, OPEC+ maintained full flexibility to either reinstate or adjust production cuts based on market behaviour. This includes the potential phased return of 1.65 million barrels per day previously withheld from the market.
The coalition stressed its commitment to market stability and promised stricter compliance monitoring, with the next review meeting scheduled for January 4, 2026.
Dangote's Broader Impact on Nigeria's Economy
Beyond immediate price fluctuations, the Dangote Refinery continues to play a transformative role in Nigeria's energy landscape. Sunday Esan, Senior General Manager of Corporate Communications at Dangote Industries Ltd., recently highlighted the refinery's significant foreign exchange savings for the nation.
Speaking at the 2025 Media Week of the Nigeria Union of Journalists in Lagos, Esan revealed that by substituting imported fuel with locally refined products, the facility is saving Nigeria over N10 billion annually. This underscores the strategic importance of domestic refining capacity for the country's energy security and economic resilience.
