The Dangote Refinery has officially announced a nationwide reduction in the pump price of Premium Motor Spirit (PMS), widely known as petrol. This development comes as the company also confirmed that its long-awaited direct fuel distribution initiative will commence on Monday, September 15, 2025. The initiative, initially scheduled for August 15, 2025, is a critical step in the company’s strategy to transform petroleum product delivery in Nigeria. With the new plan, the $20 billion mega-refinery will leverage 4,000 compressed natural gas (CNG) trucks to distribute petrol and diesel directly to consumers across the country at zero logistics cost. New Price Template Announced According to Dangote Refinery, the latest price update sets the gantry price at ₦820 per litre, consistent with last month’s announcement. However, retail prices vary across states: This adjustment translates to a ₦19 reduction in the South-West and a ₦34 reduction across Abuja, the North Central, and South-South regions. Implementation and Impact The company emphasized that the new price template and direct distribution scheme will take effect nationwide on September 15, 2025. By removing logistics costs and bypassing traditional middlemen, the refinery aims to make petrol more affordable and accessible for Nigerians. LMSINT Media can confirm that the revised template is not compulsory for independent petroleum marketers. However, it remains binding on Dangote Refinery’s major partners, including MRS Oil and other official distributors. Labour Union Response Meanwhile, tensions persist between Dangote Group and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG). The union recently hinted at the possibility of resuming strike action, accusing Dangote of failing to uphold certain agreements. In response, Dangote Group reiterated its commitment to fair labour practices, stressing that it respects the voluntary membership of unions by its employees. The announcement has sparked mixed reactions nationwide, with many Nigerians hopeful that the initiative will bring lasting relief to fuel costs and reduce the frequent challenges associated with fuel scarcity and inflated prices.
Several fuel stations in Abuja have halted operations following the Dangote Refinery’s decision to slash the ex-depot price of Premium Motor Spirit (PMS) to ₦835 per litre. This development, which began affecting retailers from Tuesday, April 16, 2025, has significantly disrupted sales activities for independent marketers across the capital city. According to LMSINT MEDIA, filling stations along major routes like the Kubwa Expressway, including MRS outlets, have remained shut for over five days due to the pricing changes. Marketers Struggle with Old Stock Losses An employee at one of the MRS filling stations, who requested anonymity, revealed that the recent price adjustment by Dangote Refinery has created substantial losses for retailers with older, higher-priced fuel inventory. “The fuel in stock was purchased before Dangote reduced prices. Selling at the new rate would mean heavy losses for us,” he said. Another staff member clarified that the station’s temporary shutdown was also due to maintenance activities and that the outlet is expected to resume operations on Tuesday, dispensing petrol at ₦910 per litre. Disruption Spreads to Other Retailers Other petrol marketing partners of the refinery—including Ardova, AP, and Optima—have reportedly adjusted their pump prices to between ₦910 and ₦920 per litre as of Monday, April 21, 2025, in Abuja and surrounding areas. Industry Leaders Raise Concerns Over Price Instability In a conversation with LMSINT MEDIA, Billy Gillis-Harry, President of the Petroleum Retailers Outlets Owners Association of Nigeria (PROOAN), criticized the frequent price changes, stating that such volatility destabilizes the petroleum market and erodes retailers’ financial viability. “Fluctuations in petrol prices, especially without proper communication or justification, negatively affect businesses and consumer confidence,” he explained. He reiterated his earlier advocacy for a six-month fuel price stability framework to mitigate uncertainty in the downstream oil sector. Older Stocks, Higher Losses Backing Gillis-Harry’s stance, Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), previously warned that marketers with existing fuel stock could face billions of naira in losses due to Dangote’s back-to-back price reductions. Just last week, the $20 billion Dangote Refinery made its second price cut, reducing the pump price from ₦865 to ₦835 per litre—a total drop of ₦45 within a short span. NNPC Reacts as Global Oil Prices Fall In response, the Nigerian National Petroleum Company Limited (NNPC) also slashed its retail price in Abuja to ₦935 per litre, adjusting to the competitive pricing triggered by Dangote’s move. This change follows a decline in global crude oil prices, currently hovering around $66 per barrel, and aligns with the federal government’s strategy to sustain the naira-for-crude deal with domestic refiners. At present, fuel prices across Nigeria range between ₦890 and ₦950 per litre, depending on the region. Related Article: Read: How Dangote Refinery Is Reshaping Nigeria’s Oil Industry Explore our coverage on Nigeria’s energy sector here BUY ANYTHING ON KONGA BUY NOW READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Channel
