By Our Correspondent
Refiners across Nigeria are intensifying efforts to secure crude oil supplies following a sharp reduction in petrol prices by the Dangote Petroleum Refinery, a move that is reshaping competition in the downstream oil market.
Dangote Refinery recently announced a reduction of N129 in the ex depot price of premium motor spirit, making locally refined petrol cheaper and increasing pressure on both local and imported fuel suppliers. The price cut is widely viewed as part of a broader strategy to stabilise fuel costs, expand market share and reduce Nigeria’s dependence on imported petroleum products.
Industry sources say the development has triggered renewed demand for crude oil among domestic refiners, who are now seeking to secure steady supplies in order to remain competitive. With lower prices expected to stimulate consumption, refiners are looking to ramp up production to meet anticipated demand.
Market analysts note that the price reduction could further weaken fuel importation, as imported petrol may struggle to compete with locally refined products sold at lower prices. The shift is also expected to ease pressure on foreign exchange demand, given Nigeria’s long standing reliance on fuel imports.
Consumers have welcomed the reduction, hoping it will translate into lower pump prices nationwide. However, industry experts caution that sustained benefits will depend on consistent crude supply, efficient distribution and stable regulatory policies.
The Dangote Refinery, Africa’s largest, continues to play a central role in reshaping Nigeria’s energy landscape, with its pricing decisions increasingly influencing market dynamics, refinery operations and fuel availability across the country.
