In a move set to impact the Nigerian fuel market, Dangote Refinery has reduced the ex-depot price of petrol to ₦865 per litre, down from the previous price of ₦880 per litre. This price cut is expected to affect the cost of petrol at filling stations supplied directly by the refinery. With the reduction in price, consumers are likely to benefit from lower petrol costs, making it an important development for the country’s fuel sector.
The price adjustment follows the resumption of the naira-for-crude agreement, which had been previously suspended. Under this agreement, crude oil is exchanged for naira, and the latest price slash reflects the new terms between the federal government and Dangote Refinery. By reducing petrol prices, Dangote aims to ease the financial burden on consumers, especially at a time when the country is facing economic challenges.
This development also comes at a time when there are ongoing debates about fuel subsidies in Nigeria. The government has faced criticism over the cost of maintaining subsidies, and the price reduction by Dangote Refinery adds fuel to these discussions. Many are hopeful that the refinery’s actions could serve as a catalyst for further price cuts across the industry, ultimately benefiting consumers nationwide.
With Dangote’s large-scale refinery operations, the decision to cut petrol prices has far-reaching implications. It could influence pricing structures across other refineries and potentially lead to greater competition within Nigeria’s petrol market. As the country strives for economic stability, this move by Dangote Refinery is seen as a step towards providing more affordable fuel to the public.
