Petrol May Drop to N800/Litre as Oil Prices Fall and Naira-for-Crude Deal Resumes
The pump price of Premium Motor Spirit (petrol) could soon fall to around N800 per litre, following a drop in global crude oil prices and the reinstatement of the naira-for-crude supply arrangement for local refiners. Industry experts and oil marketers made this projection on Wednesday.
This outlook aligns with recent developments at the Dangote Petroleum Refinery, which cut its ex-depot price for petrol to N835 per litre — its second reduction in under a week.
Industry insiders noted that achieving the N800 per litre target would require crude oil prices to fall to around $50 per barrel and a reduced reliance on foreign exchange for product purchases. As of Wednesday, Brent crude, the international benchmark, traded at about $65 per barrel.
Dangote Refinery’s latest price adjustment represents a N30 cut from the previous N865, and a N45 drop from the N880 per litre rate in effect last week. This marks the third reduction in six weeks.
A pro forma invoice reviewed by our correspondent and data from petroleumprice.ng confirmed the new pricing. The refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, stated that the price cut demonstrates Dangote’s commitment to offering high-quality fuel at affordable rates.
The revised structure indicates that petrol at the gantry will now sell for N835 per litre, inclusive of statutory levies from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Coastal sales remain suspended for now.
For diesel, the gantry price is set at $608 plus a $70 surcharge, payable either in naira at N1,650/$ or in USD. Jet fuel will be priced at $664.75 with an added $42 gantry and $22 coastal surcharge. Cooking gas prices at both gantry and coastal levels are currently on hold.
Chiejina added that Dangote’s marketing partners — including MRS, Ardova (AP), Heyden, Optima Energy, Hyde, and Tecno Oil — will retail petrol between N890 and N920 per litre across various regions:
- Lagos: N890 (down from N920)
- South-West: N900 (down from N930)
- North-West & North-Central: N910 (down from N940)
- South-East, South-South & North-East: N920 (down from N950)
He expressed optimism that the price reduction would positively impact the broader economy, offering relief to consumers and driving growth.
According to Chiejina, “Dangote Petroleum Refinery has maintained a downward trend in fuel prices, with two separate N125 reductions in February alone. Diesel and LPG prices have also seen substantial cuts due to the refinery’s sustained efforts.”
He further reiterated the company’s commitment to stable fuel supply, meeting local demand while maintaining reserves for export to support the economy and strengthen foreign exchange reserves.
The refinery also urged distributors to continue sourcing products directly from its facilities to ensure the price cuts are fully passed on to consumers nationwide.
In a related development, regulators have approved the importation of 117,000 metric tonnes (about 156.9 million litres) of petrol between April 8 and 16, 2025. This is expected to boost supply across the country. Documents from the Nigerian Ports Authority and the Major Energies Marketers Association of Nigeria confirm the imports via six vessels to Tin Can Port, Lagos, and Calabar Port.
The spot import parity price into tanks dropped slightly to N853.12 per litre on Tuesday, from N856.75 the previous Monday, while the 30-day average fell to N844.84 per litre.
This steady decline in prices coincides with the full restart of the Naira-for-Crude initiative, earlier suspended. The Ministry of Finance announced its resumption via a statement on its official X (formerly Twitter) account, following a review meeting between Minister Wale Edun and Dangote Refinery representatives.
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