Fuel prices at filling stations across Lagos and Ogun States have started falling below the N900 per litre mark following a N40 reduction in ex-depot prices by Dangote Petroleum Refinery. The price cut, which came into effect on June 30, 2025, has triggered a ripple effect across the downstream sector, with many marketers now adjusting pump prices to reflect the new cost structure.
Findings as of Sunday showed that petrol was being sold at between N875 and N890 per litre at several filling stations in the South-West, including major urban routes like the Lagos-Ibadan Expressway. Stations such as AP, SGR, As-Sallam, and Akiavic dispensed premium motor spirit (PMS) at N880, N880, N875, and N885 per litre respectively, while SAO sold at N890. A few others, including Rainoil and NIPCO, retained prices around N900 and N910.
The price reduction follows Dangote Refinery’s decision to slash its ex-depot rate for PMS from N880 to N840 per litre. This move came as global crude oil prices plunged due to de-escalation in the Middle East conflict between Israel and Iran. Brent crude, which had spiked to nearly $80 per barrel during the tensions, dropped to around $68 per barrel over the weekend, while West Texas Intermediate fell to $66.
The spokesman for the Dangote Group, Anthony Chiejina, confirmed that the price drop took effect from June 30. It marks a reversal of the previous hike to N880, which the refinery had attributed to rising crude prices during the crisis.
While the new price was introduced last Monday, many petrol stations did not immediately reduce their pump prices. Marketers cited the need to sell off old stock purchased at higher prices. The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said it was not economically viable to sell old fuel stock at a loss.
“We need to exhaust existing stocks. That is the right business thing to do. If a retailer loses N100 per litre, he may not be able to return to the market to restock,” Gillis-Harry explained.
By the weekend, however, our correspondent observed that most retailers had begun adjusting their prices downward, indicating that they had received new supplies at the revised rate.
Data from Petroleumprice.ng on Sunday confirmed that several major depots had dropped their gantry prices in line with the Dangote Refinery. RainOil, Pinnacle, Matrix, Emadeb, Swift, and Wosbab all sold at N840 per litre, while First Royal, Menj, and Aipec sold for N838. Aiteo’s depot went as low as N837, while A&E priced at N858. NIPCO and Integrated sold at N844 and N839 respectively.
MRS Oil, a major marketer of Dangote products, also slashed its pump price in Lagos from N925 to N885. In other regions, prices are still higher due to transportation costs, with rates hovering around N895 in the South-West, N905 in the North-Central and North-West, and N915 in the South-South, South-East and North-East.
Before the latest price cuts, petrol was selling between N915 and N955 per litre in most parts of the country, and even as high as N980 in some parts of the far North due to logistics challenges. This latest trend suggests a possible nationwide softening of fuel prices if global oil markets remain stable.
The N40 drop in ex-depot prices has been widely welcomed by consumers, who have been grappling with the effects of fuel price volatility since the deregulation of the downstream sector. Analysts have called the move a positive sign of market responsiveness and transparency in pricing, which could help bring some relief to households and businesses.
While this reduction is expected to boost public confidence in local refining efforts, industry stakeholders have called for continued investments in logistics, storage, and refining infrastructure to reduce reliance on imported fuel and cut down transportation costs, which still account for a large portion of the pump price, especially in inland areas.
