Dangote Petroleum Refinery has announced a reduction in the ex-depot price of petrol from N890 to N825 per litre, effective February 27, 2025. This marks the second price cut this month, following an earlier decrease from N950 to N890 per litre on February 1.
The refinery stated that this latest reduction aims to provide relief to consumers during the Ramadan season. With this adjustment, petrol pump prices in Lagos are expected to range between N860 and N865 per liter.
However, this development has raised concerns among fuel importers. Many had previously imported petrol at higher costs and now face potential financial losses due to the sudden price drop.
The Dangote Refinery, with a capacity of 650,000 barrels per day, has been operational since January 2024. Since its inception, it has made several price adjustments to align with market conditions and provide economic relief to Nigerians. In December 2024, the refinery reduced the petrol price by N70.50 per liter during the festive season.
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Industry analysts suggest that Dangote Refinery’s price reduction is a strategic move to gain a stronger foothold in the local fuel market and discourage fuel importation. Since Nigeria depends heavily on imported petrol, Dangote’s lower prices could make it difficult for importers to compete, particularly when global oil prices fluctuate.
