The Dangote Petroleum Refinery & Petrochemicals has dropped its ex-depot prices for both Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO).
The company stated that the reduction is “aimed at easing costs for consumers and businesses and strengthening domestic fuel supply.”
With this adjustment, the refinery slashed the ex-depot price of PMS (petrol) from N1,275 per litre down to N1,250 per litre. It also dropped the price of AGO (diesel) from N1,800 per litre to N1,700 per litre.
The firm linked the lower prices to “improvements in supply efficiency and increased output from its refining complex.”
This review aligns with its long-term plan to boost local production and “reduce Nigeria’s long-standing dependence on imported refined products.”
Market checks show that Dangote Refinery has adjusted its petrol prices 15 times since March 1, 2026, showcasing severe instability in the country’s downstream sector.
The facility changed prices nine times in March alone—recording “six increases and three decreases”—followed by two upward movements in April, and four separate adjustments in May, which included “two hikes and two cuts.”
The frequent price adjustments kicked off on March 1, when the refinery raised its ex-depot petrol price from N774 to N874 per litre. This N100 jump was “triggered by Brent crude rising above $80 per barrel amid escalating Middle East tensions.”
By March 6, prices hit N995 per litre (+N121) as crude neared the $90 range. A much larger surge occurred on March 9, pushing prices to N1,175 per litre (+N180) when Brent went past $100 per barrel due to “supply disruptions and tensions around the Strait of Hormuz.”
The refinery implemented its first price drop on March 10, cutting it to N1,075 per litre (−N100) after crude slipped back under $100. However, the price bounced back to N1,175 per litre (+N100) on March 13 as the global oil market strengthened.
Between March 20 and 21, the facility rolled out two quick hikes—first to N1,245 per litre (+N70) and then to N1,275 per litre (+N30)—driven by crude hitting over $110 per barrel. The month wound down with a price cut on March 26 to N1,200 per litre (−N75), which pointed to a “market correction and competitive depot pricing.”
Two more increases occurred in April. The refinery pushed prices to N1,275 per litre (+N75) on April 7, and later increased the gantry rate by an additional N75 on April 29 due to “rising refining costs.”
May brought similar fluctuations. Between May 5 and 6, Dangote raised prices to N1,350 per litre (+N75), which was “the first increase that month.”
Interestingly, the refinery turned around within hours to reverse the move, crashing the price back to N1,275 per litre (−N75). The most recent shift happened between May 29 and 30, with the refinery dropping petrol to N1,250 per litre (−N25), serving as the latest action “aimed at supporting consumers and businesses.”
The massive 650,000 barrels per day (bpd) plant started operations in phases over recent years and has continually ramped up its fuel supply to local distributors.
While drops in ex-depot costs from major plants usually ease pressure on marketers and “potentially translate into modest retail price relief,” actual pump prices are still heavily affected by taxes, logistics expenses, and profit margins added by marketers.
For companies relying on diesel for transport and power, the lower AGO rate could provide immediate relief, “particularly for firms operating in energy-intensive sectors.”
Historically, Nigeria’s fuel market has been heavily impacted by “import dependence, fuel subsidy debates and foreign exchange volatility.”
While bringing a massive local refinery online is meant to cut down import expenses, stabilize fuel availability, and “improve price transparency,” ensuring steady relief for everyday citizens still depends on how well the refinery’s output integrates into distribution networks and whether marketers pass these savings down to consumers.
