Dangote Refinery Cuts Petrol and Diesel Prices, Says Fuel Scarcity “Gone for Good”

By Folarin Adeyemi Aluko

Nigeria’s fuel market may be entering a new phase of stability as Dangote Petroleum Refinery has announced a major reduction in the prices of petrol and diesel, while assuring Nigerians that the era of fuel scarcity is effectively over.

The refinery confirmed a ₦100 reduction in the gantry price of Premium Motor Spirit (PMS), commonly known as petrol. Under the new pricing structure, the gantry price has dropped from ₦1,175 to ₦1,075 per litre.

Similarly, the coastal price has been adjusted from ₦1,150 to ₦1,028 per litre, representing a reduction of ₦122.

Diesel prices have also been lowered, with Automotive Gas Oil (AGO) now selling at ₦1,430 per litre, down from ₦1,620, marking a ₦190 price cut.

Relief for Consumers

Management of the refinery said the price reduction is part of efforts to ease the financial pressure on consumers and support economic stability across Nigeria.

According to the company, the decision reflects its commitment to maintaining fair and transparent pricing while responding to changes in the global oil market.

The refinery explained that its pricing structure remains closely tied to international crude oil prices, adding that crude used for refining is purchased at the global benchmark price plus a premium of $3 to $6 per barrel.

Payments for crude and other operational costs are made at prevailing foreign exchange rates without subsidies, the company said.

Alignment with Global Market Trends

The refinery noted that the latest price cuts follow a downward trend in global crude oil prices, and it aims to ensure that any cost advantages are passed on to Nigerian consumers.

It also revealed that throughout 2025, the refinery adjusted its gantry price at least eight times downward, raising prices only twice.

According to the company, this strategy reflects what it described as “economic patriotism” and a commitment to supporting Nigerians amid fluctuating global energy markets.

Assurance Against Fuel Shortages

Meanwhile, the Managing Director of the refinery, David Bird, has reassured Nigerians that the country will not experience fuel shortages despite instability in global oil markets.

Bird said that while many fuel-import-dependent nations are facing panic buying and rationing due to geopolitical tensions, Nigeria now enjoys a stronger supply position because of its growing domestic refining capacity.

He explained that the refinery has continued to supply fuel consistently to the domestic market even as global energy markets experience sharp volatility.

Global Tensions Driving Oil Prices

According to Bird, recent geopolitical tensions in the Middle East have pushed crude oil prices sharply higher, increasing freight and insurance costs across the global energy supply chain.

He noted that crude prices recently surged from the mid-$60 range to nearly $120 per barrel within a week, creating significant pressure on energy markets worldwide.

Despite these challenges, Bird said Nigeria now holds a strategic advantage.

“With domestic refining capacity now operational, Nigeria is better positioned to secure its fuel supply,” he said, adding that the refinery remains committed to ensuring uninterrupted fuel availability across the country.

A New Era for Nigeria’s Fuel Market?

Industry analysts say the development could mark a turning point for Nigeria’s energy sector, which for decades depended heavily on fuel imports.

With the Dangote Refinery ramping up production and adjusting prices in response to global market conditions, many observers believe the country may finally be moving toward a more stable and self-sufficient fuel supply system.