This adjustment represents the refinery’s third price change in 2025, following earlier reductions on February 1 and February 26. The recent price decrease has been positively received by oil marketers, many of whom are now prioritizing direct purchases from the refinery instead of relying on private depot owners.
The N10 reduction is expected to trigger a competitive response from private fuel depots, which may lower their prices to maintain their market share.
Declining Landing Costs Influence Market Dynamics
On Tuesday, the landing cost of imported petrol in Nigeria dropped to N774.72 per litre. Industry analysts suggest that this downward trend could push pump prices to around N800 per litre.
The overall cost of imported petrol, which includes shipping, import duties, and exchange rate fluctuations, has made retail marketers favour imports over sourcing from the Dangote Refinery. This dynamic has likely influenced the refinery’s decision to implement its recent price reduction, as it seeks to remain competitive in the market.
Depots Adjust Prices in Response
In response to the refinery’s price cut, depots in Lagos have begun revising their selling rates, with prices now ranging between N820 and N839 per litre to align with the new market reality.
The ongoing price adjustments highlight the competitive pressures within the downstream sector, as stakeholders strive to balance profitability with market share retention.