Nigerians may soon enjoy cheaper petrol prices across the country as the Dangote Refinery resumes selling petrol in naira and slashes its price to N865 per litre.
The Dangote Refinery, Africa’s largest, stopped selling petrol in naira 22 days ago. But on Thursday, it resumed sales in the local currency and reduced the ex-depot price from N880 to N865 per litre, following a government directive. This price includes all regulatory charges by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Marketers and industry experts believe the new price could lead to a reduction in fuel prices at filling stations across the country.
A notice sent to marketers early Thursday confirmed the new rates. It stated, “PMS Gantry: 865 in Naira for gantry (inclusive of NMDPRA), PMS Coastal: On hold.”
Other petroleum products like diesel (AGO) and aviation fuel (ATK) are still priced in dollars, and coastal delivery of PMS remains suspended.
Fuel May Get Cheaper Nationwide
Petroleum marketers say they expect the lower ex-depot price to reflect at the pump soon. Filling stations like MRS Oil & Gas, Ardova Plc, and Heyden, which have supply agreements with the refinery, are likely to sell petrol at around N910 per litre.
The Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, welcomed the move and said it would help stabilize fuel prices in Nigeria.
Fashola said, “It is a good development. It is what we have been telling the government—that the naira-for-crude policy should be sustained because it would bring a lot of benefits and make the price stable. Once that happens, the price of fuel will come down, and this is good for Nigeria.”
He added, “Now that the naira policy has been restored, we expect a reverse in the price.”
Marketers Caught Between Gains and Losses
While many Nigerians are hopeful, some marketers expressed concerns about losses. Some of them bought petrol at the old rate of N880 and now have to sell at the lower market price of N865.
Chinedu Ukadike, National Publicity Secretary of IPMAN, said, “We are relieved, although it’s a mixed one. Some of us who bought and haven’t exhausted our stock are now selling at a loss—it’s a huge loss. The new price will help us buy more and sell faster, but we still have mixed feelings about it.”
Sources revealed that on Tuesday, MRS filling station bought 90,000 metric tonnes of petrol—about 120 million litres—from the refinery at N880 per litre. With the price drop, they may be forced to sell at a loss unless prices increase again.
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FG Reaffirms Support for Naira-for-Crude Policy
The Federal Executive Council (FEC) on Wednesday directed full implementation of the naira-for-crude policy with local refineries. This means Nigeria will continue to sell crude oil to local refineries in exchange for naira instead of dollars.
According to the Ministry of Finance, the policy is a long-term strategy to reduce Nigeria’s dependence on foreign exchange and strengthen local refining. The policy aims to improve energy security, reduce dollar demand, and boost the country’s economic sovereignty.
“The Crude and Refined Product Sales in Naira initiative 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 of Finance said in a statement.
The ministry also admitted that there could be challenges during implementation, but said the government was working with all stakeholders to address them.
Industry Experts Hail Policy, Predict Competition
Oil and gas analyst, Olatide Jeremiah, praised the decision and said it would create healthy competition among fuel depots.
“Dangote Refinery’s resuming sales of petrol in naira has reactivated healthy competition, and the result will drive down fuel prices,” he said.
“As FG reaffirms the naira-for-crude policy to local refineries, private depots will need to be competitive to remain in business. They have been showing competitive strength lately with their pricing.”
Jeremiah added that falling crude oil prices and the naira-for-crude policy are giving Nigerians another opportunity to enjoy affordable fuel—if the retail stations are properly regulated.
He warned, however, that “retail outlets must not overprice to make abnormal profits.”