Dangote Petroleum Refinery has reduced the price of premium motor spirit (PMS), commonly known as petrol, for the second time in one week.

As of April 16, 2025, the ex-depot price (gantry price) has dropped from N865 to N835 per litre, following an earlier reduction from N880 to N865.

The Nigerian National Petroleum Company Limited (NNPCL) also recently announced a price slash of its petrol pump price to N910 per litre from N925 per litre on Wednesday, April 16.

Despite this price cut, many filling stations, including those operated by the NNPC Limited, have not yet adjusted their prices.

While some marketers have welcomed Dangote's decision, others have expressed concerns, calling the price reduction “arbitrary” and warning that it could lead to losses in the market.

Dangote announced price reduction

Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Industries, recently announced in a statement that key partners, including MRS, AP (Ardova), Heyden, Optima Energy, Hyde, and Techno Oil, will now sell petrol at reduced prices.

In Lagos, the price will drop to N890 per litre, down from N920. In the South West, it will be N900 per litre, reduced from N930, while in the North West and North Central, it will cost N910 per litre, down from N940.

In the South East, South South, and North East, the price will be N920 per litre, lowered from N950.

This price reduction highlights the refinery's commitment to providing high-quality petrol at affordable rates for consumers nationwide.

The statement also urged industry stakeholders, including marketers and distributors, to continue sourcing their products from the refinery to ensure that the benefits of these price cuts are fully realised across the country.

Why petrol price reductions

The recent drop in petrol prices is partly attributed to the falling price of crude oil.

In recent weeks, global crude oil prices have been volatile, influenced by the ongoing US tariff war.

On Wednesday, crude oil prices rose by more than 2% as expectations grew that tensions in the US-China trade war might ease.

By 1:28 p.m. ET, Brent crude was up 2.09%, trading at $66.02, while the US benchmark, West Texas Intermediate (WTI), rose 2.12%, reaching $62.63.

However, by 8 p.m. yesterday, Brent crude prices dipped further to $65.77.

Many filling stations yet to adjust prices

As of the time of reporting, most filling stations across Nigeria have yet to adjust their pump prices, with some stations still selling a litre of petrol (PMS) for as high as N990 in certain areas.

In Kano, for instance, some independent stations were selling petrol for N990 per litre, while stations operated by NNPC and MRS had prices set at N945 per litre.

In Maiduguri, Borno State, the price ranged between N950 and N980 per litre.

In the capital city, Abuja, NNPCL was selling petrol at N950 per litre, while other major stations were charging between N955 and N960.

There are indications that NNPCL will eventually adjust its prices, as is typically the case whenever Dangote Refinery makes a price cut.

However, as of the time of this report, no price adjustment has been made by NNPCL or other major stations.

Marketers express concern over ‘arbitrary’ price change

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed mixed reactions to the recent price reduction, welcoming the move but cautioning that such changes should not be arbitrary.

Dr. Billy Gillis-Harry, the national president of the association, spoke with Daily Trust and emphasised that while the reduction benefits Nigerians by improving energy availability and affordability, frequent and unpredictable price changes can have negative effects on investments in the downstream sector.

Dr. Gillis-Harry suggested that a 180-day price review period, as proposed by marketers, should be implemented.

This would allow market players to monitor trends and assess the price direction more effectively, ensuring a more stable and informed approach to pricing.

Gillis-Harry said:

"We are happy as PETROAN to hear prices being reduced but the price reduction and increase should not be arbitrary, should be what the market should dictate so that we do not create some kind of artificial difficulty of availability of funds to invest in petroleum business for the use of Nigerians. But other than that, it is a welcome development."

Another petroleum marketer, Otunba Adetunji Oyebanji, stated that there is nothing unusual about the recent price reduction.

He explained that in a fully deregulated market like Nigeria's, prices will naturally fluctuate due to competition and market dynamics, causing them to go both up and down.

He said:

“This is all about competition and market dynamics. Be watching market dynamics. If crude is doing something, you would know it would affect the price, if exchange rate is being affected, a price change is likely to come. If you watch all these factors that affect price, you would be able to predict whether something is going to happen. It’s not rocket science."

However, he noted that some marketers still have old stock, which means they may be hesitant to lower their prices quickly, as doing so could result in a loss for them.