Dangote Petroleum Refinery has announced a reduction in its petrol ex-depot price to ₦699 per litre as part of preparations for increased fuel demand during the Christmas and New Year celebrations.
The latest price cut reflects changing market conditions, including improved local supply dynamics and competitive pressure against imported fuel.
As domestic refining capacity continues to expand, pricing decisions at the refinery level are increasingly shaping wholesale fuel costs across the country.
Industry participants note that ex-depot price reductions typically affect downstream pricing over time, depending on distribution costs, margins, and logistics. While pump prices are determined by retailers, sustained reductions at the refinery level are widely viewed as a key driver of moderation in retail fuel prices.
The adjustment also comes amid broader efforts to stabilise Nigeria’s energy supply chain following the deregulation of the downstream petroleum sector.
With refined products increasingly sourced locally, exposure to foreign exchange volatility and international freight costs has begun to ease, creating room for pricing flexibility.
Market analysts see the ₦699 per litre ex-depot price as a significant reference point for fuel marketers, transport operators, and inflation watchers.
Fuel costs remain a critical input across the economy, influencing transportation, food distribution, and manufacturing expenses.
The price reduction underscores the role of domestic refining in reshaping Nigeria’s fuel market structure. As local capacity deepens, pricing outcomes are expected to become more responsive to internal supply conditions rather than external import dynamics.
While the full impact on retail prices will depend on market competition and operational costs across the distribution chain, the latest adjustment strengthens expectations of gradual relief in fuel-related cost pressures across the economy.