Dangote,
In a move aimed at easing pressure on fuel prices, Dangote Petroleum Refinery has announced a reduction in its ex-depot price of petrol, bringing the cost down from ₦880 to ₦865 per litre.
The adjustment was confirmed by a refinery official in a statement to Channels Television on Thursday.
The $20 billion facility, which began operations following its commissioning in May 2023, communicated the price revision to its marketers and clients earlier in the day.
Filling stations with existing supply agreements with the refinery—including MRS Oil & Gas, Ardova Plc, and Heyden—are now expected to reflect the change in their pump prices, with petrol likely to retail at around ₦910 per litre.
This development follows a crucial meeting on Tuesday between Dangote Refinery representatives and the Minister of Finance, Wale Edun.
After the meeting, the federal government reaffirmed its commitment to the naira-for-crude oil policy—a scheme that enables local refineries to purchase crude oil in naira rather than U.S. dollars.
The administration emphasized that this policy is not a temporary measure but a “key policy directive” designed to promote domestic refining, strengthen the naira, and ease the burden on foreign exchange reserves.
In July 2024, the Federal Executive Council (FEC) mandated the Nigerian National Petroleum Company Limited (NNPCL) to supply crude oil to local refineries, including Dangote’s, in naira.
However, NNPCL, under its former Group CEO Mele Kyari, initially limited the agreement to a six-month term that ended in March 2025.
Following the expiration, Dangote Refinery paused domestic sales in naira, citing a mismatch in its dollar-denominated crude procurement obligations.
This pause led to a surge in petrol prices, which rose from around ₦860 to over ₦1,000 per litre, sparking public concern.
The refinery assured that it would resume naira-based fuel distribution once it began receiving crude oil in naira again.
The situation took a dramatic turn when President Bola Tinubu dismissed Mele Kyari and dissolved the entire NNPCL board.
An 11-man board was immediately appointed, with Bashir Ojulari named as Group CEO and Ahmadu Kida as non-executive chairman.
With the reinstatement of the naira-for-crude initiative, the Dangote Refinery has resumed supplying fuel to the local market in naira, paving the way for more stable pump prices and easing pressure on the dollar.
Experts say this policy will provide Nigerians with much-needed relief from skyrocketing fuel prices driven by the volatility of dollar-based imports.
