DANGOTE-REFINERY
Olamilekan Abayomi
Dangote Refinery has dropped the price of petrol to N774 per litre, down from N799, as announced in a notice to marketers on Tuesday. This reduction is attributed to easing cost pressures, improved operational efficiency, and growing competition from alternative supply sources, including imported cargoes and anticipated output from modular refineries.
The price cut is expected to bring relief to consumers, especially commercial drivers and transportation companies, who have been grappling with high fuel costs. The refinery’s decision to reduce prices may also put pressure on other fuel suppliers to follow suit, potentially leading to a decrease in fuel prices across the country.
The refinery also ended its PMS lifting incentive scheme, effective from February 10, 2026. Credits for eligible volumes loaded between February 2 and February 10 will be posted to marketers’ account statements. This move is seen as a strategic decision to transition towards a more market-driven pricing approach.
Dangote Refinery’s price adjustment reflects its efforts to consolidate its position in Nigeria’s downstream petroleum market. The refinery has been increasing its production capacity, and this price cut may be a move to gain a larger market share.
The reduction in petrol price is also a welcome development for the Nigerian government, which has been struggling to manage the country’s fuel subsidy bill. The price cut may reduce the government’s subsidy burden, freeing up resources for other development projects.
The Nigerian National Petroleum Company (NNPC) Limited, which has been importing fuel, may also benefit from the price reduction. The company can now import fuel at a lower cost, potentially leading to increased profitability.
The development has sparked mixed reactions from stakeholders, with some welcoming the price cut as a step in the right direction, while others are calling for further reductions. The price of fuel is a sensitive issue in Nigeria, and the government is under pressure to ensure that prices remain affordable for consumers.
