Dangote Sets New Petrol Pump Price at ₦739 per Litre

‎Lagos, Nigeria — The Dangote Petroleum Refinery has announced a new recommended petrol pump price of ₦739 per litre, a move expected to ease the burden of high fuel costs on Nigerians and intensify competition in the downstream petroleum sector.
The announcement was made by the President of the Dangote Group, Alhaji Aliko Dangote, during a briefing at the refinery in Lekki, Lagos, where he outlined the company’s pricing position and expressed concern over the refusal of some marketers to reflect recent cost reductions at the pump.
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‎Dangote disclosed that partner filling stations, beginning with outlets operated by MRS Holdings, would commence sales at ₦739 per litre from Tuesday, with other partners expected to follow. He explained that the decision followed a reduction in the refinery’s gantry, or ex-depot, price, which had been slashed from ₦828 to ₦699 per litre. According to him, the lower ex-depot price provides sufficient margin for marketers to sell petrol at a reduced retail rate while still covering logistics and operational costs.
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‎He expressed frustration that despite these reductions, many filling stations across the country had continued to sell petrol at much higher prices, in some cases nearing ₦900 or more per litre. Dangote described this trend as unjustifiable, insisting that transportation and distribution costs from the Lekki refinery to retail outlets should not add more than ₦10 to ₦15 per litre. He maintained that there was no economic basis for the wide disparity between the refinery’s supply price and what consumers ultimately pay at the pump.
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‎In strong remarks, Dangote alleged that certain marketers and officials were deliberately resisting price reductions, describing such actions as sabotage against efforts to bring relief to Nigerians. He warned that the era of excessively high petrol prices should come to an end, stating that Nigerians should no longer be made to pay nearly ₦1,000 per litre when local production costs have dropped. He added that the refinery was determined to ensure that the benefits of local refining were felt by ordinary citizens.
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‎The announcement comes amid ongoing tensions within Nigeria’s downstream oil sector, particularly over the role of importation in a market that is now partially supplied by local refineries. Dangote criticised the continued issuance of petrol import licences, arguing that excessive importation undermines domestic refining capacity and discourages investment. He specifically raised concerns about the activities of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, claiming that unchecked import approvals could distort the market and keep prices artificially high.
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‎Nigeria’s petrol market has remained volatile since the removal of fuel subsidies and the deregulation of the downstream sector. Prices have fluctuated widely across regions, with motorists often paying significantly different rates depending on location and supply conditions. The commencement of petrol supply from the Dangote Refinery, Africa’s largest with a capacity of about 650,000 barrels per day, was widely expected to stabilise prices and reduce dependence on imported fuel.
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‎While the refinery has made several price adjustments since it began supplying petrol, the extent to which these changes have translated into uniform pump prices nationwide has remained a subject of debate. Some industry stakeholders argue that logistics challenges, foreign exchange pressures, and legacy supply contracts still affect pricing decisions by marketers. Others, however, believe that resistance to price cuts is driven more by profit considerations than by actual cost constraints.
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‎For consumers, the ₦739 per litre price offers the prospect of modest relief at a time when fuel costs continue to influence transportation fares, food prices, and overall inflation. Petrol remains a critical input in Nigeria’s economy, and any sustained reduction in pump prices could have a ripple effect across multiple sectors. Analysts note that the real impact of Dangote’s announcement will depend on how quickly and widely marketers adopt the new price.
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‎As the new pricing regime begins to roll out, attention will focus on whether filling stations beyond Dangote’s immediate partners comply with the recommended rate. The coming days are expected to test the refinery’s influence on the broader market and determine whether the ₦739 per litre price becomes a nationwide standard or remains limited to select outlets.
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