In a bid to ease the burden on consumers and support local refining, the Dangote Petroleum Refinery has reduced its ex-depot petrol price to ₦865 per litre—a cut from the previous rate of ₦880 per litre. This move comes on the heels of renewed government support for the naira-for-crude policy, an initiative designed to stabilize fuel prices by allowing local refiners to purchase crude oil in the domestic currency.
Following a high-level meeting between Dangote Refinery officials and Finance Minister Wale Edun, the Federal Executive Council has reaffirmed its commitment to fully implementing the naira-for-crude policy. This arrangement is intended to lower the reliance on the foreign exchange market for crude oil procurement and to bolster Nigeria’s energy security while keeping fuel prices competitive.
Officials from Dangote Refinery have indicated that the price reduction is expected to have a cascading effect on pump prices nationwide. Industry experts anticipate that major fuel marketers will adjust their prices accordingly, providing consumers with tangible relief amid fluctuating global oil markets.
The naira-for-crude policy—recently reinforced by the government—plays a crucial role in supporting domestic refining efforts. By facilitating crude purchases in naira, the policy aims to shield local refiners from volatile exchange rate fluctuations and to decrease the overall cost of fuel production in Nigeria.
“Reducing the ex-depot price of petrol is a clear demonstration of how local policy adjustments can directly benefit everyday Nigerians,” said a spokesperson for the Ministry of Finance. “Our renewed commitment to the naira-for-crude policy is a strategic move to enhance energy independence and stabilize fuel prices in the long term.”
Commissioned in May 2023, the Dangote Refinery, with a capacity of 650,000 barrels per day, is the largest refinery in Africa. Its ongoing operations are vital to the nation’s broader efforts to achieve energy self-sufficiency and reduce the economic impact of fuel imports.
As the government and industry stakeholders work together to advance these initiatives, consumers can look forward to improved fuel affordability. Analysts suggest that the combined effects of the price cut and the policy reinforcement may signal a positive trend for Nigeria’s energy sector, potentially paving the way for further measures aimed at stabilizing the local economy.
With these developments, both the public and industry observers remain hopeful that coordinated efforts between the government and local refiners will continue to drive progress in Nigeria’s strategic move toward energy independence.
