Dangote Petroleum Refinery has reduced its ex-depot price of petrol from N880 to N840 per litre, marking a significant move aimed at easing the burden on consumers and stabilizing fuel prices across Nigeria. The company announced the price adjustment on Tuesday, July 1, 2025, through its official X (formerly Twitter) account. The new rate officially took effect on Monday, June 30, 2025.
This strategic reduction came just one week after the refinery increased its ex-depot rate to N880 per litre. With the latest N40 cut, several retail fuel marketers, including MRS Oil & Gas, Ardova Plc, Heyden, and other partners with special supply agreements with the refinery, are now expected to reduce their pump prices to below N900 per litre. This shift aims to reflect the downward adjustment in wholesale prices and provide relief to millions of Nigerian motorists and households.
Middle East Ceasefire Triggers Global Oil Price Drop
The price reduction follows a sharp decline in international crude oil prices. Tensions between Israel and Iran had driven Brent crude close to $80 per barrel during the two-week conflict. However, after both nations agreed to a ceasefire, oil prices eased significantly. On Monday, June 30, Brent crude fell by 16 cents (0.24%) to close at $67.61 per barrel.
The ceasefire came shortly after the United States conducted airstrikes on Iran’s nuclear facilities, raising fears of an extended conflict that could threaten global oil supply. Once the crisis deescalated, market fears subsided, and crude prices dropped—prompting Dangote Refinery to review and adjust its ex-depot price downward accordingly.
This change aligns with Nigeria’s deregulated fuel pricing framework, introduced in mid-2023, under which petrol prices are now determined by international crude oil costs and fluctuations in the naira-dollar exchange rate.
Dangote Kicks Off Free Fuel Distribution with CNG Trucks
In a groundbreaking move to reduce logistics costs and enhance supply efficiency, Dangote Group has launched a nationwide initiative to deliver petrol and diesel directly to filling stations and large consumers using Compressed Natural Gas (CNG)-powered trucks. The initiative, scheduled to begin on August 15, 2025, involves 4,000 newly procured CNG trucks set to transform the landscape of fuel distribution in Nigeria.
According to a statement released by Dangote Group on Sunday, June 30, 2025, the company has invested over ₦720 billion into the CNG-powered truck fleet. This investment is expected to save Nigerians more than ₦1.7 trillion annually by eliminating high fuel transportation costs traditionally passed on to consumers.
Furthermore, the company disclosed that it will absorb over ₦1.07 trillion each year in fuel distribution expenses. This unprecedented commitment by a private entity aims to stabilize pump prices, improve fuel accessibility, and reduce inflationary pressures tied to logistics and supply chain bottlenecks.
Millions of MSMEs Set to Benefit from Reduced Energy Costs
Beyond supporting individual consumers, the Dangote distribution initiative will significantly impact Nigeria’s economic landscape, particularly its small business sector. Over 42 million Micro, Small, and Medium Enterprises (MSMEs) are expected to benefit from lower energy costs. Many of these businesses rely heavily on diesel and petrol to power generators, operate machinery, and run daily operations.
By delivering fuel directly to users at a reduced cost, the initiative will not only enhance business profitability but also stimulate productivity and job creation, especially in rural and semi-urban areas where energy access remains a critical challenge.
Meeting Nigeria’s Daily Fuel Demand Domestically
As part of its operational goal, the Lagos-based refinery plans to meet the country’s daily refined fuel consumption of approximately 65 million litres. This includes 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel.
With its massive output capacity, the refinery is positioning itself as a dependable domestic supplier capable of reducing Nigeria’s reliance on fuel imports. This move is expected to improve foreign exchange savings, strengthen national energy security, and promote self-sufficiency in refined petroleum products.
Latest Reduction Follows NNPC’s Recent Price Hike
Dangote’s price cut comes just five days after the Nigerian National Petroleum Company (NNPC) Limited raised its pump price to N915 per litre, highlighting the volatility in Nigeria’s deregulated fuel market. Since the removal of fuel subsidies in 2023, the country has shifted to a fully market-driven pricing mechanism.
Under this system, petrol prices are influenced by global oil prices, refining costs, foreign exchange rates, and transportation logistics. The current downward revision by Dangote reflects not just global oil trends but also the refinery’s commitment to stabilizing local prices through operational efficiency and innovative logistics.
Dangote’s Strategy Marks a Turning Point for Nigeria’s Downstream Sector
With the dual announcement of a price reduction and the rollout of free nationwide fuel distribution, Dangote Refinery is ushering in a new era of private-sector-driven energy reform in Nigeria. These strategic moves directly address key challenges—namely, price volatility, transportation inefficiencies, and fuel accessibility—that have long plagued the country’s downstream petroleum sector.
By integrating advanced logistics with high-volume domestic production, Dangote is positioning itself to play a central role in Nigeria’s energy transformation. Furthermore, this initiative aligns with the federal government’s broader economic reform agenda, which emphasizes private investment, deregulation, and market efficiency as tools to stabilize prices and drive long-term growth.
Conclusion: A Game-Changing Model for Sustainable Fuel Supply
Ultimately, Dangote Refinery’s latest actions signal a bold shift in Nigeria’s fuel economy. The company’s reduction of ex-depot prices, combined with the introduction of a modern CNG-based distribution network, is expected to lower pump prices, enhance supply chain transparency, and provide crucial support to consumers and businesses alike.
As the refinery prepares to roll out its distribution fleet by mid-August, Nigerians can look forward to more stable fuel prices, increased availability of petrol and diesel, and a more resilient downstream sector driven by innovation, efficiency, and private-sector leadership.