Dangote Refinery Slashes Petrol Price to N865

Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N899.50 to N865 per litre, effective immediately as of April 10, 2025. This announcement marks another strategic price cut by the $20 billion Lekki-based facility, aimed at easing the financial burden on Nigerians and fostering economic stability. The new price is a reduction of N15 from N880 per litre sold by the facility on Wednesday.

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.

Impact on Transportation Costs and Boost for Small Businesses

The immediate impact of this price slash will be felt in transportation costs, a critical driver of Nigeria’s economy. With petrol being the primary fuel for vehicles, lower pump prices—expected to hover between N880 and N900 per litre at retail outlets—will reduce operational expenses for commercial drivers and logistics companies. This could translate into lower fares for commuters and reduced shipping costs for goods, potentially easing the prices of everyday commodities like food, clothing, and household items. Given that transportation often accounts for a significant portion of commodity pricing, this move could help tame inflation, which has been a persistent challenge for Nigerians.

Beyond transportation, the price cut may stimulate small and medium enterprises (SMEs) reliant on petrol-powered generators due to inconsistent electricity supply. Lower fuel costs could decrease production expenses, enabling businesses to either stabilize or reduce the prices of their goods and services. This is particularly vital for market vendors and manufacturers, whose pricing strategies often reflect energy costs.

However, the extent of this impact hinges on market dynamics and government policies. While Dangote Refinery’s consistent price reductions—five times since December 2024—signal a commitment to affordability, competition from imported fuel and the naira’s exchange rate could temper the benefits. If marketers pass on the savings fully, consumers could see a meaningful dip in living costs. Ultimately, this N865 per litre benchmark sets a hopeful tone, potentially stabilizing prices across Nigeria’s economy and offering relief to millions.