Dangote Slashes Ex-Depot Price for Petrol to N865 Per Litre

According to a report by Channels Television, an official of the refinery confirmed the price reduction from N880 to N865 per litre.

The $20 billion refinery has also informed its marketers and customers of the slash on Thursday.

The price reduction comes as the oil prices fell in the international market due to escalating trade war between the US and China.

President Donald Trump paused recent tariffs imposed on all countries exporting goods to the US, except on China, which it has accused of unfair practices.

The continued beef has stoked concerns that a global recession may happen and will dampen demand for crude.

The slash in the ex-depot price also comes as the federal government said its Naira-for-crude initiative remains in effect and will continue despite its recent suspension by the Nigerian National Petroleum Company (NNPC) Limited after a meeting with stakeholders including the Dangote Refinery team.

According to a statement from the Ministry of Finance, the scheme is still in effect and will continue immediately, overruling the decision of the NNPC Limited under its immediate past chief executive, Mr Mele Kyari, which tenured the programme.

It affirmed that the crude and refined product sales in Naira initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.

In March, the NNPC Limited halted its Naira-for-crude oil agreement with the company and other local refiners.

The state-owned oil agency said it would stop selling crude oil to Dangote Refinery in Naira from the end of this month, claiming its deals was for six months, from October 2024 to March 2025.

This came after the refinery, owned by billionaire Aliko Dangote, triggered a price war with the NNPC, crashing the price of premium motor spirit (PMS) to N825 per litre from its depots.

The NNPC operates in the downstream sector of the petroleum industry but the Dangote Refinery only has partners like MRS Oil, Ardova Plc, and Heyden, which sell its products to customers at retail prices.