LAGOS – The price competition within the downstream oil sector in Nigeria persisted on Thursday as the Lagos-based Dangote Refinery discreetly implemented a price reduction at its loading gantry, lowering the cost of petrol loading from ₦825 to ₦815 per litre, in a third adjustment in 2025.
The new pricing structure introduced on Thursday was reportedly met with enthusiasm by oil marketers, who consequently chose to bypass private depot owners and began sourcing their products directly from the refinery.
This ₦10 reduction in price is also expected to elicit a competitive response from private fuel depots, which may lower their prices to retain their market share.
On Tuesday, the landing cost of imported petrol in the country decreased to ₦774.72 per litre, with industry analysts suggesting that the ongoing decline in prices could result in a reduction of pump prices to approximately ₦800 per litre.
“Crude oil is a major component in the production of fuel, so a further reduction in its price would definitely warrant a drop in petrol price, and it is possible to drop to N800 per litre,” the National Publicity Secretary of the Independent Marketers Association of Nigeria, Chief Ukadike Chinedu, stated.
The overall cost, which encompasses various expenses such as shipping, import duties, and exchange rate fluctuations, has led retail marketers to favour importation over sourcing products from the Dangote Refinery.
It was speculated that the landing cost could potentially reduce the pump price to ₦800 per litre, a factor that may have influenced the refinery’s decision to implement a recent price reduction.
In response to this development, depots in Lagos have begun adjusting their prices, with selling rates now ranging between ₦820 and ₦839 per litre to align with the refinery’s revised pricing.
With news agencies
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