The Dangote Petroleum Refinery has concluded the year 2025 with a seismic impact on Nigeria's fuel market, delivering a substantial reduction in the price of Premium Motor Spirit (PMS). Over the course of twelve months, the refinery's aggressive pricing strategy resulted in a cumulative price slash of over N200 per litre, offering significant relief to consumers and altering the competitive landscape.
A Year of Dramatic Price Reductions
Data tracking the refinery's ex-depot prices reveals a clear and sustained downward trend. At the close of 2024, specifically on December 19, Dangote Refinery was selling petrol at N899.50 per litre. Fast forward to the end of 2025, and the price had plummeted to N699 per litre.
This movement represents a total decline of N200.50 per litre, equating to a 22.3 per cent drop within a single calendar year. The final major cut of N129 per litre was implemented on December 12, 2025, alone accounting for a 15.58% reduction from the previous month's price.
Reshaping Market Dynamics and Pressuring Competitors
Unlike the volatile price fluctuations historically tied to global crude oil costs and foreign exchange rates, Dangote's price compression has been consistent. Industry experts point to the advantages of local refining, including reduced import dependency, improved logistical efficiency, and massive economies of scale as key drivers.
This strategy has placed immense pressure on other petroleum marketers who rely on imported fuel. Many private depots have been forced into rapid price adjustments to maintain market share, while others struggle with older, more expensive stock.
The refinery's N699 per litre ex-depot price has effectively become a new benchmark, creating a psychological and commercial ceiling for the market. Buyers are increasingly gravitating towards the cheaper, locally refined supply, leaving import-dependent sellers at a severe disadvantage.
Enforcing Compliance and Consumer Protection
To ensure the benefits of its lower pricing reach the final consumer, Dangote Refinery took an unprecedented step. The company launched a dedicated consumer hotline, allowing Nigerians to report filling stations, particularly those supplied through its channels, that sell petrol above approved rates.
This move, aimed at curbing price arbitrage, was accompanied by a direct message from billionaire owner Aliko Dangote. He urged Nigerians to reject overpriced petrol, specifically instructing consumers not to pay more than N739 per litre at stations supplied by the refinery, such as those under the MRS Oil network.
The refinery's journey from nearly N900 per litre to N699 per litre in 2025 signifies more than just cheaper fuel. It marks a fundamental shift in Nigeria's downstream petroleum sector, moving away from import-parity pricing models to a market increasingly dictated by domestic production costs. As the year closed, Dangote Refinery solidified its role not just as a supplier, but as the primary force redefining pricing behaviour, competition, and the future structure of Nigeria's petrol market.
