A significant reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, is sweeping across Nigeria following a decisive move by the Dangote Petroleum Refinery. The refinery's announcement of a new ex-depot price has triggered a wave of adjustments among private depot owners, leading to a notable crash in wholesale fuel costs.
Dangote's Game-Changing Price Slash
Over the weekend, the Dangote Group made a pivotal announcement that is reshaping the fuel market. The refinery slashed its ex-depot price from N828 to N699 per litre. This strategic reduction was announced by Aliko Dangote, President of the Dangote Group, who also pledged to enforce a nationwide pump price of N739 per litre for marketers purchasing from his facility.
Dangote expressed strong criticism towards oil marketers, accusing them of maintaining high retail prices despite receiving cheaper products. He stated that this practice sabotages efforts to ease the financial burden on Nigerian consumers. "I was told marketers have been instructed to maintain high prices, but the price we are introducing at MRS stations in Lagos from Tuesday is N739 per litre. N970 per litre, you won’t see it again," Dangote declared on Sunday.
Private Depots React with Widespread Price Cuts
In response to Dangote's aggressive pricing, private depot owners across the country have been forced to adjust their rates to remain competitive. Checks by Legit.ng reveal a new, varied pricing landscape at depots nationwide.
The new ex-depot prices now show a wide range, from as low as N702.50 at the Dangote Refinery in Lagos to N820.00 at Matrix depot in Port Harcourt. Many depots are now selling below the N800 per litre mark to marketers. A snapshot of some of the cheapest ex-depot prices includes:
- Dangote: N702.50
- MAO: N706.00
- Intergrated: N707.00
- Bovas: N708.00
- Menj & A.A Rano: N710.00
Other major depots like NIPCO in Lagos are at N745, AITEO at N780, and Mainland at N790, indicating a significant downward trend from previous highs.
Retail Pumps Begin to Reflect the Change
The reduction at the depot level is starting to trickle down to the final consumer at filling station pumps. The most visible implementation so far has been observed at MRS Oil and Gas stations in Lagos, where petrol is now being sold at N739 per litre, aligning with Dangote's directive.
Similarly, Ardova Plc (formerly Forte Oil) has reduced its pump price from N890 to N840 per litre at some of its locations. However, the adjustment is not yet universal. While MRS has led the change, other filling stations in Lagos and Ogun States were still observed selling petrol between N850 and N890 per litre, highlighting resistance from some marketers.
This MRS-led adjustment marks the first major step in Dangote's new pump price initiative and could offer temporary relief to consumers, especially ahead of the festive season when demand typically surges. However, nationwide compliance remains uncertain.
NNPC Joins the Price Reduction Trend
In a related development, the Nigerian National Petroleum Company (NNPC) Limited has also implemented price reductions at its retail outlets in major cities. In Lagos, the NNPC has cut the pump price of petrol from N890 to N875 per litre. In the nation's capital, Abuja, the price has been reduced from N920 to N915 per litre.
This move by the national oil company is expected to pressure more independent filling stations to follow suit and adjust their pump prices downward to match the new market reality created by the Dangote Refinery's aggressive pricing strategy. The coming days will be crucial in determining if this price crash will be sustained and how deeply it will penetrate the retail market across all states of the federation.
