The Dangote Petroleum Refinery has quietly reduced the ex-depot price of petrol to N825 per litre, intensifying the price war with fuel importers and private depot owners in Nigeria’s deregulated downstream petroleum sector.
The N825 price marks a N10 rebate from the previous N835 per litre rate, with the discount granted to marketers after loading and evacuation of products from the $20 billion refinery located in Lekki, Lagos. Though not officially listed, marketers say the rebate structure is Dangote’s strategic move to capture a larger share of the domestic fuel market.
This move coincides with improved crude oil production figures. According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria’s average daily crude oil production rose to 1.485 million barrels per day (mbpd) in April, up from 1.40 mbpd in March. The output is just shy of the country’s 1.5 mbpd quota from the Organisation of the Petroleum Exporting Countries (OPEC).
Marketers confirmed that while Dangote still lists N835 per litre, the effective sale price is N825 due to the post-evacuation refund, allowing depot owners and retailers to sell to end-users at between N830 and N835 per litre. This is cheaper than many importing depots, who continue to price petrol between N837 and N870 per litre, putting pressure on them to cut prices or risk losing market share.
Checks on petroleumprice.ng revealed that MRS Tincan, Pinnacle, and the Dangote depot were all offering petrol at N827 per litre on Monday, down from over N838 per litre a week earlier. By contrast, Rain Oil, A.A Rano, A.Y.M Shafa, and NIPCO Lagos still priced their products between N837 and N870 per litre.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the development, stating that the price cut was driven by intense competition. “This is the beauty of deregulation,” he said. “Dangote’s move is good for the market and for consumers.”
Ukadike added that the current scenario proves that importation still has a role to play. “As long as prices fall in line with dollar and crude oil prices, it’s healthy competition. It encourages fair pricing and benefits consumers.”
Some marketers who requested anonymity said Dangote is now dominating the fuel market, holding more than 50% of the domestic supply, and forcing others to adjust. One marketer noted, “Every time Dangote drops price, depot owners follow. The refinery has started giving rebates. It’s not openly published but it reflects in final pricing.”
Olatide Jeremiah, an oil and gas expert, described Dangote’s pricing as a tactical move to control the downstream market. “This is no longer about global crude oil prices. Local market dynamics, led by Dangote, are shaping petrol prices. We’ve entered a new era of domestic price determination.”
Despite the strategic price reductions, no official statement has been issued by Dangote Group spokesperson, Anthony Chiejina, as efforts to reach him for comments were unsuccessful.
Crude Oil Production Recovery in April
In another boost for Nigeria’s energy sector, the NUPRC announced that crude oil and condensate production for April averaged 1.683 million barrels per day, including 1.485 mbpd of crude oil and 197,607 barrels per day of condensates.
The production level is a positive signal, especially after output fell below the OPEC quota in February and March. The April output represents 99% of Nigeria’s OPEC quota, renewing hopes that the country could meet its ambitious 2 mbpd target in 2025.
In January 2025, Nigeria briefly exceeded the 1.5 mbpd OPEC target but could not sustain the momentum. The April rebound suggests that government efforts to revive the oil sector are beginning to show results, although volatility remains a concern.
