Nigeria’s Dangote Petroleum Refinery has begun nationwide sales of petrol at a reduced pump price, a move the company says is aimed at easing pressure on consumers and stabilising Africa’s largest fuel market during the year-end festive season.
In a statement, the refinery said Premium Motor Spirit (PMS) would now retail at 739 naira per litre (US$0.49) across all outlets operated by MRS Oil Nigeria Plc, marking one of the lowest official pump prices since fuel subsidies were removed last year.
The rollout covers more than 2,000 MRS filling stations nationwide, ensuring broad geographic reach for the new pricing, the company said. Dangote added that the initiative was part of its wider objective to make fuel more affordable while promoting price stability in Nigeria’s volatile downstream petroleum sector.
“We commend MRS and other marketers who have demonstrated patriotism by reflecting the reduced price at the pump,” the refinery said. “We call on others to join this effort as a show of support for Nigeria’s economic recovery.”
Fuel pricing has remained a sensitive political and economic issue in Nigeria since the government ended decades-long subsidies in mid-2023, triggering sharp increases in pump prices and inflation. Motor fuel prices surged as Nigeria relied heavily on imports, exposing the economy to swings in global oil markets and pressure on foreign exchange reserves.
The privately owned Dangote Petroleum Refinery, which began phased operations this year, is seen by authorities as a potential game-changer for the country’s energy sector. With a nameplate capacity of 650,000 barrels per day, the Lagos-based facility is expected to significantly reduce Nigeria’s dependence on imported refined products.
Dangote said the latest price reduction was backed by a guaranteed daily supply of 50 million litres of petrol, a level it said would help prevent the fuel shortages that often accompany Nigeria’s festive periods.
Historically, demand spikes during the holiday season have coincided with scarcity and price hikes, forcing consumers and businesses to absorb higher transport and logistics costs. The refinery said its intervention “fundamentally alters supply dynamics” at a time when Nigerians typically brace for hardship.
By refining fuel locally at scale, the company said it was helping to conserve scarce foreign exchange, stabilise the naira and strengthen Nigeria’s energy security, while shielding consumers from international price volatility.
Transport operators, households and small businesses have been among the hardest hit by fuel price increases over the past year, as higher pump prices fed into food costs and urban transport fares. Analysts say sustained local refining could ease inflationary pressures if price reductions are consistently passed on to consumers.
The refinery also warned against attempts to undermine the price cut through hoarding or supply manipulation. It called on regulators to act swiftly against what it described as “unpatriotic” practices aimed at creating artificial scarcity.
“Any attempt to create artificial scarcity or manipulate supply to frustrate recent price reductions is unacceptable,” the statement said, urging government agencies to remain vigilant, particularly during the high-demand festive period.
Consumers were encouraged to avoid purchasing petrol at higher prices when cheaper alternatives were available. Dangote provided a hotline for reporting MRS stations selling above the official rate of 739 naira per litre (US$0.49).
“We encourage Nigerians to avoid buying PMS at excessively high prices when they can access locally refined fuel at ₦739 per litre,” the company said.
Dangote also appealed to other fuel marketers to source products from the refinery so that the benefits of the price reduction could reach a wider segment of the population, helping to stabilise the downstream market.
The refinery reaffirmed its commitment to steady supply, price moderation and long-term national interest, saying its operations were focused on reducing import dependence rather than responding to short-term market pressures.
“Our objective remains clear: to ensure a consistent supply of high-quality petroleum products at affordable prices for Nigerians, while supporting economic stability and strengthening energy security,” the company said.
Background to Dangote Refinery
The Dangote Petroleum Refinery is the centrepiece of Nigeria’s long-running push to end its dependence on imported fuel despite being Africa’s largest crude oil producer.
Located in the Lekki Free Trade Zone on the outskirts of Lagos, the privately owned refinery is the largest single-train refinery in the world, with a planned capacity of 650,000 barrels per day. When operating at full capacity, it is expected to meet all of Nigeria’s domestic demand for petrol, diesel, aviation fuel and other refined products, while also supplying regional export markets.
The project was developed by the Dangote Group, owned by Africa’s richest man, Aliko Dangote, and has been under construction for more than a decade. It has faced repeated delays due to funding constraints, technical challenges and disruptions linked to the COVID-19 pandemic.
The refinery complex, which includes a petrochemicals plant and fertiliser facilities, has been estimated to cost more than $19 billion, making it one of the most expensive industrial projects ever undertaken in Africa. Supporters say it represents a strategic investment in Nigeria’s industrial base, while critics have raised concerns over market dominance and pricing power.
Nigeria has historically spent billions of dollars annually importing refined petroleum products, a practice that drained foreign exchange reserves and left the country vulnerable to global oil price swings and supply disruptions. Chronic underinvestment and mismanagement have left the country’s four state-owned refineries largely non-functional for decades.
Successive governments attempted to shield consumers from high fuel costs through subsidies, which became a major fiscal burden. When President Bola Tinubu removed subsidies shortly after taking office in 2023, pump prices surged, triggering inflation, labour protests and widespread public discontent.
Authorities have since promoted the Dangote refinery as a key pillar of post-subsidy reform, arguing that domestic refining will help stabilise prices, conserve foreign exchange and improve energy security. The government has also encouraged local marketers to source fuel from the refinery instead of importing.
The refinery began test production in late 2023 and has gradually ramped up output in 2024 and 2025, supplying diesel, aviation fuel and, more recently, petrol to the domestic market. Industry analysts say sustained, large-scale production will be critical to determining whether the facility can consistently lower fuel prices and reduce Nigeria’s reliance on imports.
However, challenges remain. Pricing disputes between the refinery, marketers and regulators have periodically delayed product distribution, while infrastructure bottlenecks, including pipelines and port logistics, have limited the speed at which refined products reach consumers.
Regional impact is also closely watched. If output continues to rise, the refinery could reshape fuel supply across West and Central Africa, reducing reliance on European and Asian refiners and strengthening Nigeria’s role as an energy hub.
For many Nigerians, the refinery has become a symbol of economic self-reliance. Whether it can deliver sustained affordability and market stability will be a key test of the country’s broader energy reforms.
