The Dangote Refinery has announced a nationwide reduction in petrol prices and a new date to begin its direct fuel distribution initiative. The $20 billion refinery confirmed that direct petrol and diesel distribution will now commence on Monday, September 15, 2025, a month after the earlier planned date of August 15.
This initiative, which involves the use of 4,000 compressed natural gas (CNG) trucks, aims to deliver fuel directly to consumers at zero logistics cost. The company said the move is part of efforts to reduce fuel prices across the country and improve supply to end-users without the involvement of intermediaries.
According to a new price template released on Dangote Group’s official X (formerly Twitter) account, the refinery’s gantry price remains N820 per litre, but retail prices have been reduced in many states.
In Lagos, Oyo, Ogun, Ondo, and Ekiti, petrol will now be sold at N841 per litre, down from the previous price of N860.
In Abuja, Edo, Delta, Rivers, and Kwara, consumers will pay N851 per litre, reduced from N885.
This means that consumers in the South-West will enjoy a N19 reduction, while those in North Central and South-South states will see a N34 reduction in the cost of petrol.
Dangote Refinery emphasized that these lower prices will take effect from Monday, September 15, the same day the direct delivery plan begins.
The company, however, noted that this new price template is not binding on all fuel marketers and retailers. It will only apply to MRS and other official Dangote distribution partners. Independent marketers can still set their own prices based on market forces.
The Dangote Refinery, located in Lagos, is the largest in Africa and has a capacity of 650,000 barrels per day. It has been described as a game-changer in Nigeria’s petroleum sector, which has for decades depended on fuel imports despite being a major oil producer.
By producing fuel locally and distributing directly to consumers, the refinery hopes to cut down on transportation and middlemen costs, which usually contribute to higher pump prices.
Meanwhile, the refinery is currently in a standoff with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG). On Thursday, the union threatened to go on strike, accusing the Dangote Group of failing to honour recent agreements between both parties.
NUPENG had earlier agreed on certain terms with the company regarding workers’ welfare and union activities. But the union now claims the company has gone back on those agreements.
In response, the Dangote Group said it respects the rights of its workers to join unions voluntarily and that it remains committed to peaceful industrial relations.
Since the removal of fuel subsidy by the federal government in 2023, petrol prices in Nigeria have continued to rise, reaching over N900 per litre in some regions. The public has consistently complained about the high cost of fuel and the impact on transportation and the general cost of living.
With Dangote Refinery now stepping in to produce and sell locally, many Nigerians have hoped for a positive change. This recent price reduction and the decision to sell directly to consumers is expected to help stabilize fuel prices in the coming months.
All eyes are now on September 15, when the Dangote Refinery’s direct-to-consumer distribution plan is expected to kick off fully. If successful, it could reshape the downstream petroleum sector and bring much-needed relief to millions of Nigerians struggling with high fuel prices.
