Aliko Dangote’s Refinery Cuts Petrol Prices Across Nigeria

Nigerians are getting a welcome break at the pump as the Dangote Petroleum Refinery announces another drop in petrol prices, offering some relief amid a volatile global energy market.

Africa’s richest man, Aliko Dangote, has reduced the ex-depot price of Premium Motor Spirit (PMS) by 3.3 percent, bringing it down from N850 to N820 per litre roughly $0.534. 

This N30 cut comes as international crude oil prices continue to ease, helping to bring down local fuel costs. Since the start of 2025, petrol prices have fallen nearly 14 percent, from N950 to the current N820 per litre.

Boosting Nigeria’s energy independence

The $20 billion Dangote Petroleum Refinery has quickly become a central player in Nigeria’s energy sector. Operational since last year, the facility has steadily increased output moving from 350,000 barrels per day in mid-2024 to 500,000 barrels in January 2025. 

It is expected to hit its design capacity of 650,000 barrels daily next month, with further expansion plans to reach 700,000 barrels before the end of the year.

By refining more of Nigeria’s crude locally, the plant is drastically reducing the country’s dependence on imported fuel. This shift is already changing trade patterns across Africa, with Nigeria edging closer to becoming a net exporter of refined products such as jet fuel, naphtha, and fuel oil. European refiners, once a key supplier to the Nigerian market, are now being forced to look for new buyers.

Competitive pressure on fuel arketers

Industry experts believe this latest price cut will heighten competition among fuel marketers, particularly those still reliant on costly imports. Dangote Group has reassured Nigerians that fuel supply will remain steady, with reserves large enough to meet both domestic demand and export commitments.

It is a milestone for African industry

Dangote’s net worth has climbed to $29.3 billion, bringing him closer than ever to becoming the first African to reach the $30 billion mark. 

But beyond his personal fortune, the refinery represents a significant leap for African industrial capacity transforming local crude into high-value refined products, strengthening energy security, and opening up new opportunities for regional trade.

For many Nigerians, the latest cut in petrol prices is more than just a drop at the pump; it’s a sign that the country’s long-standing reliance on imported fuel could soon be a thing of the past.