Nigerians are finally experiencing significant relief at the pumps as petrol prices have begun a noticeable downward trend across major cities. This welcome development follows a decisive move by the Dangote Petroleum Refinery, which sharply reduced its ex-depot price over the weekend of December 14, 2025.
Market Reacts to Dangote's N125 Price Slash
The catalyst for this change was a substantial reduction of N125 per litre in the ex-depot price announced by the Dangote Refinery. While the full impact is still spreading across the country, market checks in Lagos, Abuja, Kano, and Bayelsa confirm that adjustments have begun. Although prices largely remain above the N800 mark, the reduction has ignited fresh competition among oil marketers and brought a wave of optimism to motorists just before the Christmas season.
Industry sources indicate that Alhaji Aliko Dangote, Chairman of the refinery, had promised that stations sourcing directly from his facility would start selling at N739 per litre in Lagos from Tuesday, December 17. This promise has materialized, triggering a ripple effect throughout the downstream sector.
Price Variations Across Key Cities
The price adjustments are not uniform, revealing significant disparities between regions and marketers.
In Lagos, a price war seems to be led by MRS Oil and Gas. Their filling stations are now dispensing petrol at a remarkable N739 per litre, leading to long queues at locations like the Alapere axis. Other major marketers in the city have also reduced prices, but not as sharply:
- BOVAS: N820 per litre
- Conoil: Approximately N850 per litre
- Ardova: N880 per litre
- Heyden: As high as N890 per litre
This represents a notable drop from the previous highs of N910 to N920 per litre recorded in recent weeks.
In Abuja, the situation is less encouraging. The federal capital is lagging, with most filling stations still stubbornly selling above N900 per litre, showing a slower response to the new market reality.
In Kano, a significant drop has been recorded. Major marketers like Aliko, A.Y. Maikifi, and A.A. Rano reduced their pump prices from N925 to N850 per litre on Tuesday. An MRS station in the city was out of stock, with attendants suggesting prices could fall further to around N750 once new supplies arrive.
In Bayelsa, prices have seen a modest decline to around N890 per litre, while in Ilorin, Kwara State, outlets like BOVAS and Shafa are selling at N820.
Depot Prices Crash, IPMAN Urges Patience
The reduction at the refinery has forced a dramatic crash at private depots, particularly in Lagos. Depot owners have slashed their prices from about N828 to N710 per litre, a reduction of N118 or roughly 14%. Initially, some operators tried to hold prices near N800, but sluggish sales and the threat of excess stock compelled the swift adjustment.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has welcomed the price cut. The National Secretary, Alhaji Olanrewaju Okanlawon, confirmed the nationwide downward trend and appealed for public patience. He explained that filling stations are still selling off older, more expensive stock, and a more significant, uniform price drop is expected in the coming days as new, cheaper supplies circulate.
Motorists have expressed relief but also criticism, noting that while price increases are often instantaneous, reductions tend to be frustratingly slow. Many have commended the Dangote Refinery for its intervention during the festive period, which has eased the financial burden on households.
Energy analysts suggest that sustained supply from the Dangote Refinery could intensify competition throughout the yuletide season, potentially leading to even lower prices if marketers fully align with the new pricing structure. This event marks a pivotal moment in Nigeria's downstream oil market, demonstrating the impact of local refining capacity on domestic fuel costs.
