By Smart Chuks
For millions of Nigerians struggling with rising transport fares and the knock-on effects of high fuel costs, a modest sense of relief may finally be in sight. The Dangote Petroleum Refinery has resumed the sale of Premium Motor Spirit (PMS) in naira and has simultaneously reduced its ex-gantry petrol price, a move that could translate into slightly cheaper fuel at filling stations across the country.
SaharaNews247 reliably gathered that the 650,000-barrels-per-day refinery slashed its petrol loading cost to ₦865 per litre, down from ₦880 per litre sold earlier in the week. The adjustment came 22 days after the refinery temporarily suspended naira-denominated sales of petroleum products, a decision that had contributed to recent price volatility in the downstream sector.
Although the ₦15 reduction may appear marginal, industry observers say it carries symbolic and practical significance, particularly at a time when fuel pricing remains a sensitive issue for households and businesses alike.
Confirmation from Official Documents
According to information obtained by SaharaNews247, the revised pricing was communicated to marketers and strategic partners through an official notice circulated on Thursday morning. A pro forma invoice sighted by our correspondent confirmed the new ex-depot rate, while independent checks on petroleumprice.ng corroborated the development.
The refinery clarified that the ₦865 per litre price for PMS includes statutory charges imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority. However, other refined products such as diesel, aviation fuel and kerosene are still being sold in United States dollars, while the sale of PMS through coastal vessels remains temporarily on hold.
Policy Shift Behind the Price Review
The decision by the Dangote Refinery is closely linked to renewed efforts by the Federal Government to fully implement the naira-for-crude and refined products policy. The initiative, which mandates transactions in local currency between domestic refineries and suppliers, is aimed at reducing Nigeria’s dependence on foreign exchange for petroleum imports.
Earlier in the week, the Federal Executive Council directed the full implementation of the policy after an initial delay. This followed a high-level meeting between the Minister of Finance, Wale Edun, and representatives of the Dangote Refinery, where progress and outstanding challenges were reviewed.
In a statement released by the Ministry of Finance, the government stressed that the naira-for-crude initiative is not a stopgap measure but a long-term strategy designed to strengthen local refining capacity, enhance energy security and stabilise the foreign exchange market.
Officials acknowledged that the transition has not been without difficulties but insisted that the policy remains firmly in place and aligned with Nigeria’s broader economic objectives.
What It Means for Pump Prices
With the reduction in ex-depot prices, filling stations operated by marketers such as MRS Oil & Gas, Ardova Plc, Heyden Petroleum and others with direct supply agreements with the Dangote Refinery are expected to review their pump prices downward. Market projections suggest that petrol could sell for around ₦910 per litre at these outlets, reflecting the revised loading cost.
For commuters, transport operators and small business owners, any reduction in fuel prices—no matter how slight—can help ease the pressure of rising living costs, especially in an economy where petrol prices influence everything from food distribution to electricity generation.
Mixed Reactions Among Marketers
Despite public optimism, the price adjustment has created unease among some petroleum marketers who recently lifted large volumes of PMS at the previous rate. Industry sources disclosed that MRS, one of the refinery’s major partners, lifted approximately 90,000 metric tonnes of petrol—about 120 million litres—earlier in the week at ₦880 per litre.
With the sudden price cut, marketers holding unsold stock may now be forced to sell at reduced margins or even at a loss.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, described the situation as bittersweet.
“There is relief, but it comes with pain,” Ukadike said. “Those of us who bought at the old price and still have stock are now selling at a loss. It’s a huge financial strain. That said, the new price will help us buy cheaper going forward and sell faster.”
Calls for Policy Consistency
The Vice President of IPMAN, Hammed Fashola, welcomed the resumption of naira sales, describing it as a positive step that should be sustained to avoid future price shocks.
“This is a good development and it is what we have been advocating,” Fashola said. “If the naira-for-crude policy is sustained, it will stabilise prices and deliver long-term benefits. Once that happens, fuel prices will gradually come down, and Nigerians will feel the impact.”
He added that the earlier suspension of the policy played a significant role in the recent spike in petrol prices after the Dangote Refinery halted naira sales.
“Now that the policy has been restored, we expect prices to reverse,” he said.
Experts See Renewed Competition
Energy analysts believe the development could usher in a more competitive downstream market. Oil and gas expert Olatide Jeremiah noted that the refinery’s pricing decision, combined with softer global crude oil prices, could further moderate fuel costs in the coming weeks.
“Dangote Refinery resuming petrol sales in naira has reactivated healthy competition,” Jeremiah said. “As the Federal Government reaffirms this policy, private depots will need to remain competitive to survive. Recent tanker reports show increased loading from the Dangote Refinery, which is a positive signal for supply.”
However, he cautioned that the benefits to consumers would depend on effective regulation to prevent excessive profiteering at the retail level.
Government Reassures Nigerians
The Federal Government has reiterated its commitment to the naira-for-crude initiative, admitting that implementation challenges are inevitable but manageable. Officials insist that coordinated efforts among stakeholders are ongoing to ensure the policy delivers tangible benefits.
The Ministry of Finance emphasised that the initiative will remain in effect as long as it serves the public interest and supports national economic stability.
A Cautious Sense of Optimism
While the latest price reduction may not dramatically transform petrol prices overnight, it represents a cautious but positive step towards greater stability in Nigeria’s fuel market. Sustained policy consistency, improved local refining capacity and fair competition could, over time, ease the burden on consumers and reduce the country’s exposure to foreign exchange volatility.
As of the time of filing this report, efforts to obtain official confirmation from the Dangote Group’s Chief of Corporate Communications, Anthony Chiejina, were unsuccessful.
Author Bio
Smart Chuks is a senior energy and political affairs correspondent with SaharaNews247. He has over a decade of experience reporting on Nigeria’s oil and gas sector, public policy and economic reforms. His work focuses on simplifying complex national issues for both local and international audiences, with a strong emphasis on accuracy, accountability and public interest journalism.
