Despite the much-publicized cut in the ex-depot price of Premium Motor Spirit (PMS) by Dangote Refinery, motorists across Nigeria are yet to feel any relief at filling stations, where a litre of petrol still sells for over ₦900. Checks by Daily Trust over the weekend revealed that the refinery’s latest price adjustment has not translated into a corresponding decline in retail pump prices.
The refinery recently reduced its gantry price by ₦49 per litre — from ₦877 to ₦828 — representing a 5.6% decrease. The move, which took effect on Friday, marks Dangote’s second major downward review in three months as part of efforts to respond to market dynamics.
Other major petroleum marketers have also reviewed their ex-depot prices. Data from petroleumprice.ng shows that AITEO reduced its price by ₦15 to ₦850 per litre (a 1.73% drop), Bovas cut ₦21 to ₦848 (2.42%), AYM Shafa reduced ₦5 to ₦880 (0.56%), while Zamson implemented a marginal ₦3 cut to ₦880 (0.34%).
Market Expectations vs Reality
Analysts had predicted that lower global crude oil prices would translate into cheaper petrol locally. Brent crude currently trades at $63.63 per barrel, while West Texas Intermediate (WTI) sells for $59.75 — both reflecting a steady slide following OPEC+’s decision to pause output hikes for the first quarter of 2025 in response to oversupply concerns.
Despite these developments, domestic fuel prices have remained largely unchanged. Marketers attribute this to a mix of supply chain costs, existing inventory bought at older prices, and uncertainty surrounding new government import duties.
Import Duty Concerns
The recent proposal by the federal government to impose a 15% import duty on petrol and diesel has also raised concerns among stakeholders. The Major Energies Marketers Association of Nigeria (MEMAN) warned that the tariff could add as much as ₦122 to the pump price of petrol, thereby worsening inflationary pressures.
MEMAN’s Executive Secretary explained that while tariffs can help protect local refineries, the proposed rate is “too high” and could effectively serve as a ban on imports. The association urged the government to adopt a transparent, evidence-based policy process that considers the wider economic implications.
Prices Still High Nationwide
Across major cities, pump prices remain stubbornly high despite Dangote’s price slash. In Lagos, most stations sell between ₦900 and ₦925 per litre. A Daily Trust survey showed Bovas selling at ₦900, Mobil at ₦910, Fatgbems and Capital Oil at ₦915, while NNPC retail outlets averaged ₦920 per litre. MRS stations affiliated with Dangote were seen selling at ₦910.
In Kano, the situation is similar. Most filling stations, including AY Maikifi, Aliko, and Matrix Energy, continue to sell petrol at ₦960 per litre. Some outlets, such as MRS stations in Gyadi-Gyadi, were not dispensing fuel at all.
Abuja residents are also paying high prices. NNPC stations sell at ₦945 per litre, while independent marketers sell at around ₦955.
Marketers Cite Existing Stock
Marketers who spoke with Daily Trust confirmed that the reduction by Dangote Refinery is genuine but explained that pump prices may not reflect the new rates until existing stock purchased at higher prices is exhausted.
According to Chinedu Ukadike, Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), “Most marketers want to finish their current stock bought at the old rate before implementing the new price. These things are not immediate; it’s a systematic process.”
He added that further price drops would depend on sustained declines in global crude oil prices and stable supply conditions in the domestic market.
With consumers yet to see any benefit from Dangote’s latest price review, the coming days will determine whether the market adjusts — or if petrol prices continue to defy downward pressure despite favorable global trends.