In a move welcomed by marketers and consumers, the Dangote refinery has announced a further reduction in its ex-gantry loading cost of petrol to N865 per litre, down from N880 per litre just a day prior. This price adjustment coincides with the Federal Executive Council's renewed commitment to the Naira-for-Crude agreement with local refiners, signaling a concerted effort to stabilize and potentially lower fuel prices in Nigeria.
The refinery communicated the N15 per litre price decrease to its customers via a notice issued on Thursday morning. Confirmation of this development was also obtained through a pro forma invoice and checks on petroleumprice.ng.
This price reduction aligns with earlier exclusive reports indicating that the 650,000 barrels per day Dangote refinery was expected to lower its petrol loading costs by the end of the week, a move anticipated to contribute to an overall decrease in fuel prices at the pump.
Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), had previously reassured the public about the impending price drop while commenting on the Federal Executive Council’s directive regarding the Naira-for-Crude agreement.
On Wednesday, the Federal Executive Council (FEC) formally directed the full implementation of the previously suspended Naira-for-Crude agreement with local refineries, emphasizing that this initiative is not a temporary measure but a "key policy directive designed to support sustainable local refining."
The Ministry of Finance elaborated on this directive in a statement published on its official X (formerly Twitter) handle, titled “Update on the Crude and Refined Product Sales in Naira Initiative.” This statement followed a meeting held on Tuesday between the Minister of Finance, Wale Edun, and representatives from Dangote Refinery, a primary beneficiary of the agreement, to review progress and address ongoing implementation matters.
The statement from the Ministry of Finance explicitly clarified the long-term nature of the policy, stating that it is "not a temporary or time-bound intervention but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market."
The Ministry’s statement further detailed the discussions of the Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative, which convened on Tuesday. "The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council," the statement read.
This renewed push for the Naira-for-Crude agreement, coupled with Dangote Refinery's proactive price reduction, suggests a significant step towards achieving greater stability and affordability in Nigeria's petroleum market by encouraging local refining and reducing dependence on foreign currency for fuel procurement.