Dangote Petroleum Refinery has announced a further reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N899.50 to N865 per litre, effective immediately as of today, Thursday, April 10, 2025. This latest price cut represents another strategic move by the $20 billion Lekki-based facility to alleviate the financial burden on Nigerians and contribute to economic stability. The new price reflects a N15 decrease from the N880 per litre the refinery was selling on Wednesday.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed the price reduction while commenting on the Federal Executive Council�s (FEC) directive regarding the Naira-for-Crude agreement.
On Wednesday, the FEC officially directed the full implementation of the previously suspended Naira-for-Crude agreement with local refiners. The immediate impact of Dangote Refinery’s price slash is expected to be significantly felt in transportation costs, a crucial element of Nigeria’s economy.
With petrol being the primary fuel for vehicles, lower pump prices � anticipated to range between N880 and N900 per litre at retail outlets � are poised to reduce operational expenses for commercial drivers and logistics companies. This could lead to lower fares for commuters and decreased shipping costs for goods, potentially translating into more affordable prices for everyday necessities such as food, clothing, and household items. Given the significant role transportation costs play in commodity pricing, this development could aid in curbing inflation, a persistent economic challenge in Nigeria.
Beyond transportation, the price reduction may also provide relief to small and medium enterprises (SMEs) that rely on petrol-powered generators due to inconsistent electricity supply. Lower fuel costs could decrease their production expenses, potentially enabling these businesses to stabilize or even reduce the prices of their goods and services. This is particularly important for market vendors and manufacturers whose pricing strategies are often influenced by energy costs.
However, the full extent of this positive impact will depend on various market dynamics and government policies. While Dangote Refinery’s consistent price reductions � marking the fifth such cut since December 2024 � indicate a commitment to affordability, competition from imported fuel and fluctuations in the Naira’s exchange rate could moderate the benefits. If marketers fully pass on the savings to consumers, a meaningful decrease in living costs could be realized.
Ultimately, Dangote Refinery’s new ex-depot price of N865 per litre sets a hopeful precedent, potentially contributing to the stabilization of prices across Nigeria’s economy and offering much-needed relief to millions of citizens.
