The Dangote Petroleum Refinery has announced a significant price reduction for petrol and is set to begin a new direct distribution strategy that could save the Nigerian economy over a trillion naira annually.
According to a press release, the refinery has slashed the ex-depot (gantry) price of Premium Motor Spirit (PMS) to N820 per litre, a move aimed at improving fuel availability and reducing costs for Nigerian consumers.
Starting September 15, 2025, the refinery will begin the direct supply of petrol to 11 states, with the first phase focusing on improving distribution efficiency.
Under the new pricing structure, the final pump price for consumers will be N841 per litre in Lagos and other South-Western states, while states like Abuja, Rivers, Delta, Edo, and Kwara will have a retail price of N851 per litre. This new pricing, which factors in logistics, is expected to provide a substantial relief to millions of Nigerians.
In a move to streamline logistics and cut costs, the Dangote Group plans to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks for the free delivery of petrol to registered stations.
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This strategic initiative is expected to save the Nigerian economy over N1.8 trillion annually by eliminating the need for third-party transporters and improving the supply chain. The company has announced that a nationwide expansion will follow the successful implementation of the first phase, as more CNG trucks arrive from China.
This announcement follows a recent two-day industrial action by the National Union of Petroleum and Natural Gas Workers (NUPENG) over a dispute with the Dangote Group. The strike was suspended after a memorandum of understanding (MoU) was signed, an agreement which has paved the way for the refinery’s new distribution plans.
The swift resolution with the union ensures the free association of drivers and prohibits the creation of any new unions, which has now resolved a key obstacle to the direct distribution model. The new strategy is a major development for Nigeria’s downstream oil sector and a positive step toward stabilizing the market and providing a consistent fuel supply to the public.
