Nigeria's downstream oil sector is experiencing dramatic shifts as Dangote Refinery's latest price reduction triggers nationwide petrol price reductions at filling stations.
Market Reacts to Dangote's Price Slash
Following Dangote Refinery's announcement last week cutting petrol prices by almost N50 per litre, filling stations across Lagos and Ogun states have swiftly adjusted their pump rates. The mega refinery reduced its ex-depot price from N887 to N828 per litre, creating immediate ripple effects throughout the petroleum distribution chain.
Field investigations conducted on Tuesday, October 11, 2025, revealed that numerous stations selling Dangote petrol have already lowered prices to around N900 per litre, down from previous rates of N915 and N920. Station managers confirmed the direct correlation between the refinery's decision and their new retail pricing.
Station Managers Predict Further Reductions
Nurudeen Olalekan, manager at an AP filling station in Ikoyi, provided insight into the evolving situation. "We are expecting further reductions in the coming days," he told reporters. "Right now, we're selling old stock bought at N887 per litre. Once we start receiving new supply at N828, prices could fall to N850 or even lower."
The trend extended to Ogun State, where stations operated by MRS and Heyden in the Ifo area reduced prices from N950 to N920 per litre. Operators indicated that more cuts might follow if Dangote maintains its current pricing structure.
Import Halt and Market Restructuring
The refinery's aggressive pricing strategy is forcing major marketers to reconsider fuel importation. Clement Isong, Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), confirmed that imports will temporarily stop because Dangote's pricing makes imported petrol economically unviable.
Dangote's pricing model utilizes import parity calculations, considering global crude costs, freight, and logistics. The refinery monitors 30-day average prices rather than daily fluctuations, providing more stability to the market. However, energy policy analyst Adeola Yusuf cautioned Nigerians about potential volatility, noting that petroleum prices remain susceptible to crude oil market movements.
The Federal Government's planned 15% import tariff on refined products further strengthens Dangote Refinery's competitive position, potentially reshaping Nigeria's fuel distribution landscape for the foreseeable future.
