Nationwide Petrol Price Drop Predicted as Dangote Switches to Naira Sales
Twenty-two days after suspending the sale of petroleum products in naira, the Dangote Refinery has resumed sales of its refined petroleum products to its partners and marketers in the local currency.
The 650,000 barrels facility has also informed marketers and customers of a downward review of its loading cost, reducing its ex-gantry price to N865 per litre—a move that could ease pressure on fuel prices across the country.
The new price is a reduction of N15 from N880 per litre sold by the facility on Wednesday.
Our correspondent gathered that the refinery informed its customers in a notice sent out on Thursday morning.
A Pro forma invoice was sighted by our correspondent and checks into petroleumprice.ng also confirmed the development.
The notice sent to marketers indicated that a litre of petrol will now be sold at N865 inclusive of charges by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)
It disclosed that other products are still priced in dollars, while the sale of PMS via coastal vessels remains on hold.
The notice read, “Good morning. Our updated prices for 10.04.25 are: PMS Gantry: 865 in Naira for gantry (inclusive of NMDPRA), PMS coastal: On hold
“AGO Gantry: $579.00 + $77, AGO Coastal: $579.00 + $8, ATK Gantry: $622.25 + $42, ATK Coastal: $622.25 + $22 and LPG Coastal: On hold.”
Recall that marketers had exclusively informed our correspondent that the 650,000-barrel refinery was anticipated to lower its petrol loading costs by the end of this week, further contributing to the reduction in fuel prices.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, reassured the public of the price drop while commenting on the Federal Executive Council’s directive regarding the naira-for-crude agreement.
On Wednesday, the Federal Executive Council, after an initial delay, directed the full implementation of the suspended Naira-for-Crude agreement with local refiners.
It said the initiative with local refineries is not a temporary measure but a “key policy directive designed to support sustainable local refining.”
The Ministry of Finance disclosed this in a statement published on its official X handle titled, “Update on the Crude and Refined Product Sales in Naira Initiative.” The statement was released following a meeting on Tuesday between the Minister of Finance, Wale Edun, and representatives from Dangote Refinery, a major beneficiary of the agreement, to review progress and address ongoing implementation matters.
The committee said the policy is not temporary but a long-term plan to cut Nigeria’s dependence on foreign exchange for petroleum.
It added that the initiative is not a temporary or time-bound intervention but a key policy directive designed to support sustainable local refining and bolster energy security.
The statement read, “The Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative convened an update meeting on Tuesday to review progress and address ongoing implementation matters.
“The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council.
“Thus, the Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.”
The policy, which mandates the transaction of crude oil and refined petroleum products in Naira, is aimed at strengthening the country’s economic sovereignty, enhancing local refining capacity, and stabilising the foreign exchange market by reducing the demand for dollars in domestic petroleum transactions.
The ministry explained that this policy is structured to foster energy security and encourage investment in domestic refining infrastructure.
While acknowledging that the transition involves complexities, the government admitted that existing challenges are being systematically addressed.
“As with any major policy shift, the committee acknowledges that implementation challenges may arise from time to time.
“However, such issues are being actively addressed through coordinated efforts among all parties. The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives,” the statement concluded.
With the latest development, filling stations like MRS Oil & Gas, Ardova Plc, Heyden, and others with special agreements with the Dangote Refinery are expected to reduce their pump price to N910 to reflect the marginal reduction in the ex-depot price of the premium commodity.
Meanwhile, the refinery’s decision to adjust its pricing in line with market conditions has drawn mixed reactions from petroleum marketers. While many Nigerians have welcomed the new, lower pump price as a much-needed relief, some marketers say the move has put them at a disadvantage.
Industry sources told our correspondent that on Tuesday, MRS filling station lifted 90,000 metric tonnes of PMS (120 million litres) from the refinery at the previous rate of N880.
With the recent price slash, marketers like MRS are now faced with the prospect of selling at a loss, raising concerns about the financial strain on operators in the downstream sector.
The IPMAN national publicity Secretary said, “We are relieved, although it’s a mixed one. Some of us who bought and haven’t exhausted our stock are now selling at a loss—it’s a huge loss. The new price will help us buy more and sell faster, but we still have mixed feelings about it.”
The Vice President of IPMAN, Hammed Fashola, had described the move as a good development.
“It is a good development; it is what we have been telling the government that it should be sustained because it would bring a lot of benefits and make the price stable. Once that happens, the price of fuel will come down, and this is good for Nigeria.
He said Nigerians should expect a drop in fuel prices, adding that the suspension of the policy caused the surge in prices after the Dangote refinery halted the sale of petrol in naira.
“Now that the naira policy has been restored, we expect a reverse in the price,” Fashola said.
Commenting, an oil and gas expert, Olatide Jeremiah, said the latest development has sparked fresh competition in the downstream segment.
Olatide, in an interview with our correspondent, said, “Dangote Refinery’s resuming sales of petrol in Naira has reactivated healthy competition, and the result will drive down fuel prices.
“As FG reaffirms the naira for crude policy to local refineries, private depots will need to be competitive to remain in business, they have been showing competitive strength lately with their pricing. Though according to Tanker Reports, we have been seeing massive inflows of tanker vessel loading from Dangote refinery, that’s commendable.
“The crude oil crash, coupled with the naira for crude policy renewal, just offers Nigerians another chance to buy affordable fuel at the pump, if only the retail outlets are regulated not to overprice for abnormal profits.”
Efforts to reach the Dangote group’s Chief of Corporate Communications, Anthony Chiejina, to get official confirmation were unsuccessful as of 7:14 pm when this report was filed.
