By Charles Ike-Okoh
FRI SEPT 12 2025-theGBJournal| Dangote Refinery’s latest gantry price announcement, has caught many observers and critics by surprise and it is expected to cause a domino effect on petrol pricing across the country.
The management of the Refinery set a new gantry benchmark of N820 per litre from N850 per litre, the lowest since it began operations on 22 May 2023 in Lekki, Nigeria, and added a Cavet-”direct supply of petrol with free delivery.”
This measure takes effect from Monday, September 14, 2025.
The new gantry price follows lowered retail pump price set for various distribution outlets across the country.
State’s retail price ranges between N841 per litre to N851 per litre.
Price in Abuja, Delta Rivers, Edo and Kwara is fixed at N851 per litre, while Lagos, Ogun Oyo, Ondo, Ogun and Ekiti will retail at N841 per litre.
Dangote management equally sent out an open invitation to petrol station owners nationwide to register for free delivery and ”other benefits,” an unprecedented development in history of petrol distribution in the country.
The ”free delivery” effectively eliminates many other costs associated with how petrol is priced in the country, including transportation, handling exchange rate effects and profit margins of marketers.
The new Dangote Refinery gantry have re-opened conversation around the possibility of a N700 per litre in the country.
”It is not impossible under favorable circumstances. What we are now seeing in the country is producers reacting to market forces. Brent is selling at around $67, so Dangote Refinery is responding appropriately,” one analysts told the G&BJournal in Lagos.
Recall that PENGASSAN has argued for a N700-N750 per litre petrol, as a ”public position.”
They pegged their argument on the assumption of ”efficient operations” which many say is what is seen with Dangote Refinery presently.
But that may not be enough. For that to happen (N700 per litre), Dangote Refinery will have to drop the gantry or ex-depot price below N700 level-into the region of N600-N650, to allow room to accommodate the associated costs of distribution-taxes, retail margin and transportation.
Of course, factor in a stable and favorable foreign exchange rate which impacts the overall cost structure-which relies mostly on imported input.
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