Fuel prices across Nigeria are expected to drop as the Dangote Refinery resumes the sale of petroleum products in naira and slashes its petrol loading cost to N865 per litre. This comes after a 22-day suspension of the local currency sales and follows the Federal Executive Council’s directive to fully implement the Naira-for-Crude initiative.
The 650,000 barrels-per-day refinery reduced its ex-depot petrol price by N15 from N880, a move aimed at easing the pressure on domestic fuel prices. A notice to marketers confirmed the new rate, which includes charges by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Marketers with special agreements with the refinery—such as MRS Oil & Gas, Ardova Plc, and Heyden—are expected to lower their pump prices to around N910 in response to the downward price adjustment.
The Federal Government, through the Ministry of Finance, reaffirmed that the Naira-for-Crude policy is not a temporary measure but a long-term economic strategy. The initiative is intended to strengthen local refining capacity, reduce dollar dependency, and stabilize the foreign exchange market.
“The Crude and Refined Product Sales in Naira initiative is not a time-bound intervention, but a key policy directive designed to support sustainable local refining and bolster energy security,” the ministry stated after a progress review meeting with Dangote Refinery officials on Tuesday.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the development. Its National Publicity Secretary, Chinedu Ukadike, expressed optimism that the lower prices would boost sales, though he acknowledged concerns among marketers who had stocked up at the previous price of N880.
“It’s a mixed feeling. Some of us who bought earlier are now selling at a loss, but overall, this price reduction will help increase supply and lower costs for consumers,” he said.
Vice President of IPMAN, Hammed Fashola, also described the price cut as a positive step. “This is what we’ve been advocating for—stable pricing and a strong local currency-based system. With the naira policy reinstated, we expect fuel prices to drop significantly,” he said.
Energy analyst Olatide Jeremiah noted that the Dangote refinery’s pricing strategy is fostering healthy competition in the downstream sector and could lead to improved efficiency and cost savings in the long term.
The decision marks a major shift in Nigeria’s downstream oil market and is expected to provide much-needed relief to consumers grappling with rising living costs.
