Dangote Refinery Slashes Fuel Prices, Sets September 15 for Direct Petrol Distribution

The Dangote Refinery has announced a nationwide reduction in petrol prices ahead of the launch of its much-anticipated direct fuel distribution scheme, set to begin on Monday, September 15, 2025.

Africa’s largest refinery, with a capacity of 650,000 barrels per day, confirmed in a statement on X that its new gantry price remains ₦820 per litre, the same as last month. However, retail prices have been adjusted downwards across several states.

New Price Template Across Nigeria

Under the revised template, petrol will now retail at:

• ₦841 per litre in Lagos, Oyo, Ogun, Ondo, and Ekiti — down from ₦860.
• ₦851 per litre in Abuja, Edo, Delta, Rivers, and Kwara — down from ₦885.

This translates to a ₦19 reduction in Lagos and the South-West, and a ₦34 cut across Abuja, the South-South, and the North-Central region.

Direct Distribution with Zero Logistics Cost

The refinery confirmed that from September 15 it will begin delivering petrol and diesel directly to willing consumers using its 4,000 compressed natural gas (CNG) trucks. This initiative eliminates logistics costs, a move expected to lower pump prices and ease supply challenges nationwide.

The direct distribution scheme was originally scheduled to begin on August 15 but was postponed.

Ongoing Tensions with NUPENG

The development comes amid a standoff between the Dangote Group and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG). The union has threatened to resume strike action, accusing the refinery of breaching recent resolutions.

Dangote, however, insists it respects workers’ voluntary membership of unions and remains committed to dialogue.

Industry observers say while Dangote’s price template applies directly to its partners such as MRS, other marketers retain autonomy over pump prices.

The price reduction and logistics-free distribution model are expected to test market dynamics as the $20 billion facility ramps up operations.