Petrol Drops Below ₦1,300 as Dangote Refinery Cuts Depot Prices

• Petrol drops below ₦1,300 in some areas after Dangote Refinery reduces ex-depot price to ₦1,250 per litre.

• Private depots and marketers adjust prices, but changes vary across states due to logistics and supply chains.

• Nigeria’s deregulated fuel market continues to experience frequent price swings driven by global oil and exchange rates.

• Consumers face unstable transport and living costs as fuel price reductions rarely translate evenly across the country.

Nigeria’s fuel market has once again shifted, with petrol prices dropping below ₦1,300 per litre in several parts of the country following a fresh reduction in ex-depot prices by the Dangote Petroleum Refinery. The development has triggered short-term relief for motorists, but also renewed concerns over the instability of fuel pricing in Africa’s largest economy.

The Dangote Refinery recently cut its petrol ex-depot price from about ₦1,275 to ₦1,250 per litre, a move that immediately influenced private depots and marketers who adjusted their rates downward to remain competitive. As a result, some filling stations in Lagos, Ogun, and other urban centres now sell petrol between ₦1,250 and ₦1,295 per litre, while a few outlets briefly dipped below ₦1,300 depending on location and logistics costs.

The current drop is part of a wider pattern of volatility that has defined Nigeria’s post-subsidy fuel market. Since the removal of fuel subsidies in 2023 and the full deregulation of pricing, petrol costs have fluctuated sharply, rising when global crude prices or exchange rates climb, and falling when depot prices are adjusted or competition intensifies among suppliers.

This constant fluctuation has left many Nigerians struggling to plan transport and business expenses. Transport fares often rise quickly when fuel increases but rarely drop at the same pace when prices fall, creating a lag that consumers say worsens the cost of living.

Industry data shows that petrol prices in Nigeria have moved through several cycles in recent years, at times crossing ₦1,400 per litre in some regions before dropping closer to ₦1,200–₦1,300 ranges when refinery or depot prices are reduced. But these reductions are often unevenly reflected across states due to logistics costs, dealer margins, and regional supply differences.

While domestic refining, especially from the Dangote Refinery, has improved local supply and reduced import dependence, it has not fully stabilised pump prices. Instead, Nigeria now operates a market-driven system where global oil trends, exchange rates, and domestic competition all interact to determine what consumers pay daily.

RELATED: Dangote cuts jet fuel price to ₦1,650, offers airlines 30-day interest-free credit

The latest price cut is also being linked to broader competition among fuel depots, many of which have been adjusting their prices in response to Dangote’s dominance in local supply. This has intensified a price war of sorts, offering temporary relief but also contributing to unpredictable swings.

For ordinary Nigerians, the impact is mixed. While lower prices provide brief relief for commuters and small businesses, the uncertainty of how long such reductions will last continues to fuel frustration.