By Anastasia John E.
Barely weeks after an initial downward review, the Dangote Petroleum Refinery and Petrochemicals has once again reduced its ex-depot (gantry) loading cost of petrol, this time to ₦835 per litre. The $20 billion Lagos-based refinery informed its marketers and customers of the latest slash on Wednesday, a move confirmed by a refinery official to Channels Television. This second reduction in April, down from the previous ₦867, signals a potential further easing of petrol prices at filling stations across the country.
Following this development, filling stations with existing special agreements with the Dangote Refinery, including major players like MRS Oil & Gas, Ardova Plc, and Heyden, are expected to adjust their pump prices to below ₦900 per litre to reflect the reduced ex-depot cost of the premium motor spirit.
This price adjustment comes on the heels of a significant meeting last week between representatives of the Dangote Refinery and the Minister of Finance, Wale Edun. The outcome of that meeting reaffirmed the government’s commitment to the naira-for-crude policy, a crucial initiative designed to support sustainable local refining and not merely a temporary measure. This policy directive overrides a previous stance by the Nigerian National Petroleum Company Limited (NNPCL) under its former leadership, solidifying the government’s backing for Dangote’s refining operations.
For decades, Nigeria, despite being a major crude oil producer, has grappled with persistent energy challenges, relying heavily on imported refined petroleum products due to the long-standing dysfunction of its state-owned refineries. The commissioning of the Dangote Refinery in May 2023 marked a significant step towards energy independence. However, the removal of fuel subsidies in May 2023 led to a dramatic fivefold increase in petrol prices, soaring from approximately ₦200 per litre to around ₦1000 per litre, further burdening citizens already struggling with an unreliable electricity supply.
Dangote’s successive price reductions offer a glimmer of hope for some respite from these high fuel costs. As the private refinery ramps up production and benefits from the naira-for-crude arrangement, the potential for sustained downward pressure on pump prices increases.
This development will be closely watched by Nigerians who rely heavily on petrol to power their vehicles and generators, offering a potential easing of the economic strain caused by the sharp increase in fuel costs over the past year.
