Oil marketers have attributed the recent drop in petrol prices across Nigeria to increased domestic refining by the Dangote Refinery, gains in the naira, and improved supply conditions.
Speaking to Nairametrics, the Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said rising output from the refinery and a stronger exchange rate have reduced landing and distribution costs.
He said petrol prices have eased as the naira gains against the dollar. Ukadike added that lower foreign exchange costs continue to support price stability.
Another marketer, Kingsley Smart, said improved supply logistics have removed scarcity from the market. He said fuel availability has stabilized across major cities.
Smart noted that depot prices fell after both NNPC and Dangote Refinery adjusted rates. He linked the move to domestic supply growth and softer global crude prices.
Dangote Records Multiple Price Cuts in 2025
Dangote Refinery has recorded several petrol price cuts since it began partial operations. In August 2025, petrol sold for about ₦850 per litre. The price later dropped to ₦820.
In November, the refinery reduced its gantry price to ₦828 per litre. It also cut coastal prices from ₦854 to ₦806 per litre.
The refinery denied that a reported reversal of a 15% import tariff influenced the price cuts. In a statement on November 17, the company said production efficiency and market competition drove the adjustments.
The company said the move aimed to encourage domestic sourcing and improve market pricing.
Independent marketers later adjusted pump prices to reflect the changes.
Dangote to Supply 1.5 Billion Litres Monthly from December
On December 1, Dangote Group said the refinery would supply 1.5 billion litres of petrol monthly. The company said the supply would begin in December.
The announcement followed the Federal Executive Council’s October approval of the refinery’s expansion plan. The government endorsed the scale-up to 1.4 million barrels per day for local and regional supply.
Smuggling Persists Despite Price Declines
Aliko Dangote said petrol prices in Nigeria remain far lower than in neighbouring countries. He said the price gap continues to encourage smuggling.
Dangote said petrol sells for about ₦800 per litre in Nigeria, compared with ₦1,500 to ₦1,600 per litre in nearby markets. He said border enforcement has reduced smuggling but has not eliminated it.
Government Intensifies Border Security
Ukadike said the government has strengthened border enforcement through Operation Whirlwind. The operation involves Nigeria Customs and security agencies.
He said authorities have increased military presence along northern borders. He added that Dangote Refinery has also begun legal exports to neighbouring countries.
Ukadike said regulated exports could reduce illegal fuel movements. He also said independent marketers now operate longer hours due to improved supply confidence.