In a significant development for Nigeria’s downstream oil sector, the Dangote Refinery has reduced the price of petrol at its loading point to N865 per litre, down from N880 just a day earlier.
According to Punch, the new price was formally communicated to marketers and buyers via an official notification, signaling what may be the beginning of a broader trend toward cheaper locally refined fuel.
Why the Price Drop Matters
This adjustment comes amid renewed momentum behind the naira-for-crude oil swap policy, recently reactivated by the Federal Executive Council (FEC). The program, which allows local refiners to pay for crude in naira instead of U.S. dollars, had been temporarily suspended but is now being enforced to:
- Encourage domestic fuel production
- Reduce Nigeria’s reliance on foreign exchange
- Stabilize local petrol prices
Government-Refiner Collaboration
On Tuesday, a key meeting was held between the Minister of Finance and major refining stakeholders, including Dangote Refinery, to evaluate the progress of the naira-for-crude plan and strategize for full-scale implementation.
Following the discussions, all parties reaffirmed their commitment to the policy, viewing it as a long-term solution to forex pressure and an essential step toward energy security.
What This Means for Nigerians
The reduction in petrol price—although marginal—is expected to:
- Provide some relief to consumers
- Potentially trigger lower transportation and logistics costs
- Signal greater stability in the local fuel market as local refining ramps up
The move has also been verified by the petroleumprice.ng platform, lending further credibility to the new price benchmark.
Looking Ahead
While the current drop to N865 per litre may not immediately translate to lower pump prices nationwide due to distribution, taxes, and retail margins, it does indicate progress in Nigeria’s effort to localize its fuel economy.
With the Dangote Refinery now actively selling petrol and the government showing renewed commitment to local refining, further price cuts and market efficiencies could follow in the coming weeks.
