In a move expected to ease pressure on Nigerians and stabilize fuel prices, the Dangote Refinery has announced a fresh cut in the ex-depot price of petrol.
The price was reportedly reduced from ₦880 to ₦865 per litre, a development confirmed by an official of the refinery on Thursday.
This price slash came shortly after a crucial meeting held on Tuesday between the refinery’s representatives and the Minister of Finance, Wale Edun.
Following the meeting, the Federal Government reaffirmed its commitment to the naira-for-crude policy, stating that the initiative would continue and was not a temporary fix.
The government noted, “This policy is not a one-off but a key directive designed to support sustainable local refining.”
With this reaffirmation, it became clear that the suspension of the initiative by the previous leadership of the Nigerian National Petroleum Company Limited (NNPCL) had been overruled.
In July 2024, the Federal Executive Council mandated that crude oil be sold to local refineries, including Dangote Refinery, in naira.
The goal was to support local production and reduce the strain on the country’s dollar reserves.
However, in March 2025, NNPCL announced that the arrangement was only for six months and would end that same month.
As a result of the suspension, the refinery halted its naira-based sales and warned that it was forced to take this step due to a mismatch.
According to the refinery, “This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.”
This sudden halt triggered a sharp increase in petrol prices, jumping from ₦860 to over ₦1,000 per litre in a matter of days.
Consumers were left to bear the extra burden, paying more than ₦70 more per litre.
The situation changed swiftly when President Bola Ahmed Tinubu dismissed the then Group Chief Executive Officer of NNPCL, Mele Kyari, and dissolved the entire NNPCL board.
A new team was appointed, with Bashir Ojulari as the new GCEO and Ahmadu Kida as non-executive chairman.
Experts believe that the return of the naira for crude policy would help in bringing long-term relief to consumers.
Moreover, it is expected to reduce the pressure on the nation’s foreign reserves and maintain some level of fuel price stability.
Meanwhile, the Dangote Refinery confirmed that it would resume local fuel sales in naira once crude oil cargoes are received from the NNPCL in naira.
