Dangote Reduces Petrol Price To N1,250/litre, Diesel to N1,700, Citing Local Supply Improvement

Dangote Petroleum Refinery & Petrochemicals has lowered its ex-depot prices for Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), in a move the company says is aimed at easing costs for consumers and businesses and strengthening domestic fuel supply.

Under the latest adjustment, the refinery cut the ex-depot price of PMS (petrol) to N1,250 per litre from N1,275 per litre, and reduced AGO (diesel) to N1,700 per litre from N1,800 per litre.

The company attributed the reductions to improvements in supply efficiency and increased output from its refining complex.

The price review comes as part of the refinery’s strategy to deepen local refining capacity and reduce Nigeria’s long-standing dependence on imported refined products.

LEADERSHIP checks indicate that Dangote Refinery has changed its petrol (PMS) price 15 times, since March 1, 2026 to date, reflecting extraordinary volatility in Nigeria’s downstream fuel market.

The refinery adjusted prices nine times in March alone—six increases and three decreases—before making two more upward adjustments in April and four changes in May, including two hikes and two cuts.

The price journey began on March 1, when the refinery increased its ex-depot petrol price from N774 per litre to N874 per litre, a N100 jump triggered by Brent crude rising above $80 per barrel amid escalating Middle East tensions. Just days later, on March 6, prices climbed again to N995 per litre (+N121) as crude moved into the $90 range. A major spike followed on March 9, when prices surged to N1,175 per litre (+N180) as Brent crossed $100 per barrel amid supply disruptions and tensions around the Strait of Hormuz.

The first reduction came on March 10, when the refinery cut prices to N1,075 per litre (−N100) following a brief crude pullback below $100. However, prices rebounded on March 13 to N1,175 per litre (+N100) as oil regained strength.

Between March 20 and 21, the refinery raised prices twice in quick succession—first to N1,245 per litre (+N70), then to N1,275 per litre (+N30)—as crude rallied above $110 per barrel. The quarter ended with a cut on March 26 to N1,200 per litre (−N75), reflecting market correction and competitive depot pricing.

April saw two more upward adjustments. On April 7, the refinery raised prices to N1,275 per litre (+N75), and on April 29, it increased the gantry rate by another N75 amid rising refining costs.

May proved equally volatile. On May 5–6, Dangote hiked prices to N1,350 per litre (+N75), marking the first increase that month. Within hours, the refinery reversed course and cut prices back to N1,275 per litre (−N75). The most recent adjustment came on May 29–30, when the refinery lowered petrol to N1,250 per litre (−N25), the latest in a series of cost-reduction moves aimed at supporting consumers and businesses.

The Dangote facility, with a nameplate capacity of 650,000 barrels per day (bpd), began phased operations in recent years and has steadily expanded its supply to domestic distribution channels.

Lower ex-depot tariffs from major refineries is known to relieve pressure on downstream distributors and potentially translate into modest retail price relief, though final pump prices also reflect taxes, distribution costs and margins set by marketers.

For businesses that rely on diesel for power generation and logistics, the AGO cut could offer short-term savings, particularly for firms operating in energy-intensive sectors.

Nigeria’s downstream fuel market has historically been shaped by import dependence, fuel subsidy debates and foreign exchange volatility. The entry of large-scale domestic refining capacity is intended to reduce import bills, stabilise supply, and improve price transparency. However, integration of refinery output into existing distribution networks and the pass-through of ex-depot savings to end-users remain critical for consumers to feel sustained relief.