Fuel prices drop again in Nigeria after Dangote Refinery cuts ex-depot price to N1,075
By Aboki Forex —
Filling stations across Nigeria have started reducing petrol prices after Dangote Refinery lowered its ex-depot price to N1,075 per litre. In Abuja, several independent marketers including AA Rano, Ranoil and NIPCO now sell petrol for between N1,205 and N1,240 per litre.
The price adjustment comes just two days after Dangote Refinery reduced its gantry price from N1,120 to N1,075 per litre, citing the decline in international crude oil prices. At the time of the adjustment, West Texas Intermediate crude traded at about $68 per barrel, while Brent crude hovered around $72 per barrel.
Marketers pass on lower costs to consumers
A market survey conducted on Saturday in Abuja and neighbouring communities revealed that major independent marketers have revised their prices downward. The affected stations now sell Premium Motor Spirit at between N1,205 and N1,240 per litre, compared with the previous average price of about N1,300 per litre.
Earlier, MRS Filling Stations, a key distributor of Dangote Refinery products, reduced its pump price in Abuja to N1,191 per litre. The Nigerian National Petroleum Company Limited also adjusted its retail price to N1,210 per litre in the Federal Capital Territory.
Why prices are not falling faster
Despite the latest reductions, pump prices remain above N1,000 per litre, which was the level before the rise in global oil prices. Dangote Refinery has explained that crude oil is typically purchased weeks or even months before refining under commercial agreements linked to monthly average pricing, rather than prevailing spot prices.
The company said most of its crude is acquired using the Dated Brent pricing system, with additional expenses such as market premiums, freight charges and logistics significantly increasing the final landed cost. As a result, petroleum products currently leaving the refinery are largely produced from inventories bought when crude prices were considerably higher than current market levels.
Meanwhile, PETROAN says petrol prices cannot be reduced immediately because most filling stations are still selling fuel bought at higher prices. The association said marketers need to recover their costs, deal with expensive loans, and make enough profit to keep their businesses running. PETROAN also called for an energy bank with low-interest loans and urged the establishment of more local refineries to lower fuel prices.
What this means for Nigerian consumers
The latest price cuts offer some relief for motorists and businesses that have been grappling with high fuel costs. However, with petrol still selling above N1,000 per litre in most stations, the impact on transport fares and the prices of goods and services may take time to materialise. If global crude prices remain low and Dangote Refinery sustains its price cuts, further reductions at the pump could follow in the coming weeks.