Nigerians are experiencing welcome relief at fuel stations as a significant drop in petrol prices sweeps across the country. This positive development follows a major supply surge triggered by the Dangote Refinery's commitment to ramp up production.
Market Competition Heats Up After Dangote's Announcement
The catalyst for the price reduction was a decisive move by the Dangote Refinery. The company publicly confirmed its capacity and intention to supply the Nigerian market with 50 million litres of Premium Motor Spirit (PMS) daily in December and January, scaling up to 57 million litres daily from February 2026. This promise of massive, consistent supply has ignited fierce competition among fuel distributors, forcing a widespread price adjustment.
Private depot owners, who act as major wholesalers, were the first to react. In a bid to attract marketers and stay competitive against Dangote's new ex-depot price of N839 per litre, they began slashing their rates. This competitive pressure has created a domino effect, ultimately benefiting the retail consumer.
Price Cuts Recorded at Depots Nationwide
The price reductions are visible across key coastal depots. In Lagos, following the arrival of vessels like ST Nenne and Sea Raptor, major depots such as Wosbab, Chipet, and Bovas are now selling at N836 per litre. Aiteo's depot is offering a slightly lower rate of N835 per litre.
The trend is national, not confined to Lagos. Data from Petroleumprice shows the following adjustments:
- Port Harcourt: Depots including Masters and Liquid Bulk are now selling at N853 per litre.
- Warri: Fresh supplies have led to reductions, with Danmarna and Optima selling at N848 per litre, and Nepal at N846 per litre.
- Calabar: Stable inflows maintain competitive pricing, with Matrix at N848 per litre and Soroman at N846 per litre.
Retail Pump Prices Follow Downward Trend
The wholesale cuts have quickly translated to lower prices for everyday Nigerians at the pump. The Nigerian National Petroleum Company Limited (NNPC) has adjusted its retail prices downward. Its stations now sell petrol at N905 per litre in Lagos (down from N910) and N930 per litre in Abuja (down from N940).
Other major retail outlets like Ardova and MRS are also selling below the N900 per litre mark in many locations. Market analysts suggest that further price adjustments are likely as the supply situation remains strong with Dangote's increased output and continued cargo arrivals.
Diesel Prices Also on a Downward Path
The positive supply impact extends beyond petrol. The price of Automotive Gas Oil (diesel) has also been falling significantly. From a peak above N1,100 per litre in March 2025, diesel now trades between N911 and N950 at depots. This decline is attributed to increased supply from both the Dangote Refinery and incoming shipments, coupled with weaker demand. Industry watchers anticipate prices may fall further.
This series of events marks a significant shift in Nigeria's downstream petroleum sector, demonstrating how increased local refining capacity and robust supply can directly lead to lower fuel costs for consumers and businesses alike.
