The price competition in Nigeria’s downstream oil sector intensified on Thursday as the Dangote Refinery discreetly lowered its petrol loading cost, reducing the price from N825 to N815 per litre. This marks the third time in 2025 that the refinery has implemented a price reduction, following similar cuts on February 1 and February 26.
The latest price change was met with a positive reception from oil marketers, who have now begun sourcing their products directly from the Dangote Refinery, bypassing private depot owners. This N10 reduction is expected to trigger a competitive response from private depots, potentially leading them to lower their prices in a bid to retain market share.
Earlier in the week, the landing cost of imported petrol in Nigeria fell to N774.72 per litre, with experts suggesting that further price declines could lead to pump prices being adjusted to around N800 per litre. The reduction in the landing cost, which factors in shipping, import duties, and exchange rate fluctuations, has made imports more attractive compared to sourcing from local refineries.
It is speculated that the Dangote Refinery’s decision to reduce prices was in part a response to these developments, as the refinery seeks to maintain its competitive edge in a rapidly changing market.
In response to the refinery’s price cut, depots in Lagos have begun adjusting their prices, with current selling rates now ranging between N855 and N876 per litre in an attempt to align with the new pricing structure set by the Dangote Refinery.
