The Dangote Petroleum Refinery has announced a further reduction in its ex-depot petrol price to N825 per litre, marking its second price cut this month. The new rate takes effect from Thursday, February 27, according to a statement released by the company on Wednesday.
The ex-depot price is the rate at which fuel marketers purchase petrol before adding their markup for retail sales at filling stations. This latest reduction follows an earlier price drop from N950 to N890 per litre on February 2, which was attributed to falling global crude oil prices, The ICIR reported.
Economic Relief for Nigerians
Dangote Refinery emphasized that the price cut aims to ease the financial burden on Nigerians, particularly with the upcoming Ramadan season, aligning with President Bola Ahmed Tinubu’s economic recovery policies.
“This strategic price adjustment is designed to provide essential relief to Nigerians while supporting economic recovery efforts,” the company stated.
The refinery previously implemented similar price reductions during the Christmas season, slashing petrol costs by N70.50 per litre to mitigate the impact of high fuel prices during the festive period.
New Petrol Prices at Retail Outlets
With the revised ex-depot price, petrol at MRS Holdings filling stations will now sell at:
N860 per litre in Lagos
N870 per litre in the South-West
N880 per litre in the North
N890 per litre in the South-South and South-East
Meanwhile, AP (Ardova Petroleum) and Heyden stations will offer petrol at:
N865 per litre in Lagos
N875 per litre in the South-West
N885 per litre in the North
N895 per litre in the South-South and South-East
Market Influence and Export Gains
The 650,000-barrel-per-day Dangote refinery is gradually reshaping Nigeria’s fuel market, reducing the country’s reliance on imported petroleum products. According to the Organisation of Petroleum Exporting Countries (OPEC), Dangote’s refining activities have led to a decline in petrol imports from Europe and increased Nigeria’s influence in the global fuel market.
In a significant development, the refinery recently sold two cargoes of aviation fuel to Saudi Aramco, further cementing its growing international footprint.
Fuel Queues and Supply Challenges
Despite the price cuts, reports indicate fuel queues in parts of Lagos, linked to disruptions in fuel distribution. The Petroleum Tanker Drivers (PTD) branch of NUPENG went on strike on Sunday, citing police extortion and harassment as reasons for halting fuel transportation.
Additionally, the Independent Petroleum Marketers Association of Nigeria (IPMAN), Southwest Zone, threatened to shut down operations following the seizure of 30 petrol-laden tankers by the Lagos State Traffic Management Authority (LASTMA).
With Dangote Refinery increasing its market share and NNPC Limited struggling to keep pace, the coming months could see further shifts in Nigeria’s fuel distribution landscape. The refinery is currently operating at 85% capacity, with plans to reach full capacity next month, an expansion that could further influence pricing and supply dynamics in the domestic and international markets.
