The Dangote Petroleum Refinery has announced a reduction in the ex-depot (ex-gantry) price of its premium motor spirit (PMS) from N880 to N865 per litre.
The refinery management informed its marketers and customers of the price adjustment on Thursday, April 10.
Energy analysts suggest that the price reduction is linked to a global drop in oil prices, with oilprice.com reporting the current Brent crude price at $63.86 per barrel. “What the Federal Government is losing due to the drop in global oil prices, which sharply fell from the budget benchmark of $75 per barrel, is a gain to the domestic market, leading to lower prices for Nigerian consumers,” said Henry Ademola Adigun, an oil sector governance expert.
A government official also affirmed that the reduction is part of long-term policy changes. “This is not a temporary fix. The naira-for-crude initiative is a key policy directive designed to support sustainable local refining,” the official stated.
The Federal Executive Council first approved this policy in July 2024, instructing the Nigerian National Petroleum Company Limited (NNPCL) to supply crude oil to local refineries, including Dangote, in naira instead of dollars. This aimed to ease pressure on foreign exchange reserves and stabilize fuel prices.
However, the policy encountered a setback in March 2025 when NNPCL, under the leadership of then-Group CEO Mele Kyari, announced that the agreement, valid for six months, had expired.
This led to Dangote Refinery suspending local sales in naira, citing a mismatch between its dollar-denominated crude obligations and naira revenues. Consequently, petrol prices surged from N860 to over N1,000 per litre.
In response to public outcry and market instability, President Bola Tinubu intervened by dissolving the NNPCL Board and appointing a new leadership under Bashir Ojulari as Group CEO and Ahmadu Kida as non-executive chairman. With the policy now reinstated, industry experts anticipate a gradual stabilization of fuel prices.
The Dangote Refinery has resumed its commitment to selling refined products in naira, contingent on receiving naira-denominated crude cargoes from NNPCL.
Experts believe that the reinstatement of this policy could ease pressure on the US dollar and lead to more predictable fuel pricing, providing much-needed relief to Nigerian consumers.
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