Dangote Refinery’s Price Slash Yet to Reflect at Filling Stations Despite ₦820 Ex-Depot Rate

Nearly three weeks after the Dangote Refinery announced a significant reduction in its ex-depot price of petrol to ₦820 per litre under a logistics-free supply arrangement, most of its partner filling stations across Nigeria have yet to adjust their pump prices accordingly. The refinery had projected that the retail cost of petrol in Lagos and other South-West states would drop to around ₦841 per litre, creating widespread expectations of relief among motorists. However, a survey conducted by Punch revealed that most stations still sell petrol between ₦865 and ₦870 per litre, dampening hopes for cheaper fuel.

Only a handful of stations, particularly some outlets operated by MRS Oil Nigeria Plc, have implemented the expected price adjustment. For instance, the MRS station located in Alapere, Lagos, was one of the few outlets selling petrol at ₦841 per litre, resulting in long queues that spilled out onto the adjoining roads. Motorists flocked to the station in droves to benefit from the lower rate. Conversely, nearby filling stations maintained their previous prices, continuing to sell fuel at ₦865 per litre.

In Ogun State, a similar pattern emerged. The MRS station in Olowotedo sold petrol at ₦875 per litre, while other marketers such as Heyden retailed at ₦863, and Ardova as well as several independent outlets kept prices between ₦865 and ₦870. The disparity between the refinery’s projections and the actual retail prices on the ground has triggered widespread confusion and concern among consumers.

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Dangote’s Logistics-Free Plan Fails to Deliver Expected Relief

In mid-September, Dangote Refinery unveiled a new logistics-free fuel supply scheme that aimed to cut transportation and handling costs. The company had announced that over 1,000 compressed natural gas (CNG)-powered trucks would begin nationwide distribution of petrol from September 15. This initiative was designed to ensure that fuel could be delivered directly to filling stations across the country, reducing dependence on traditional distribution networks that inflate prices.

Under this model, motorists in Lagos were expected to buy petrol at ₦841 per litre, while those in Abuja, Rivers, Delta, Edo, and Kwara States would pay slightly higher at ₦851 per litre. The refinery hoped that by removing logistics costs, consumers would experience a noticeable drop in fuel prices. However, three weeks later, the expected relief has not materialised.

Reports from Sunday Punch indicated that Dangote’s distribution efforts have indeed commenced, as several branded CNG-powered trucks were seen along the Lagos–Ibadan Expressway delivering petrol to various depots and stations. A source at the refinery confirmed that many marketers had already received their allocations at the new ex-depot rate but failed to implement the recommended price cuts at the pump.

“It’s unfair to keep selling at old rates when the product is being supplied at ₦820 per litre with free logistics,” the refinery official lamented. “Many marketers are deliberately keeping prices high despite benefiting from reduced costs. Unfortunately, we cannot compel them to change prices, as regulations prevent us from fixing pump rates. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) agrees that pricing remains a marketer’s decision.”

Market Tensions Over Dangote’s Price Strategy

While many consumers have applauded Dangote Refinery’s efforts to lower petrol prices, not all industry stakeholders are in support of the refinery’s approach. The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) expressed concerns that Dangote’s frequent and unpredictable price adjustments could destabilise the downstream market.

According to DAPPMAN’s Executive Secretary, Olufemi Adewole, such reductions, although well-intentioned, often come at times that disrupt the market equilibrium. “Claims that repeated fuel price cuts by Dangote are purely patriotic overlook their broader impact,” Adewole stated. “These cuts often occur when other importers have cargoes already in transit or stored in their tanks, leading to sudden price shocks. This destabilises competition and imposes financial strain on market participants, including the refinery’s own domestic clients.”

Adewole warned that without proper coordination and regulatory oversight, these frequent adjustments could discourage private investment and erode market confidence. He called for a more structured pricing framework that balances consumer interests with market stability.

NNPCL and Marketers Maintain Status Quo

Meanwhile, the Nigerian National Petroleum Company Limited (NNPCL) has maintained its existing pump price, despite Dangote’s latest adjustment. NNPCL spokesperson Andy Odeh confirmed that the company’s retail stations in Lagos continue to sell petrol at ₦865 per litre and that there were no immediate plans to revise this rate.

Independent marketers, who had earlier promised to review pump prices once they received fresh supplies from the Dangote Refinery, have also failed to deliver on their pledge. As of Sunday, no noticeable reduction had been observed in their outlets across Lagos and neighbouring states.

Analysts believe that many marketers may be reluctant to lower prices due to existing stock purchased at higher costs or fears of future supply fluctuations. They also note that the deregulated nature of Nigeria’s downstream sector means refineries can only recommend, not enforce, retail prices.

For now, Nigerian motorists continue to face high fuel costs despite the refinery’s price cut. While Dangote’s efforts to reduce logistics expenses mark a positive step, the lack of enforcement and market coordination has limited its impact. Until retail stations nationwide reflect the ₦820 per litre ex-depot price, the anticipated relief for consumers remains elusive.