Dangote refinery drives 28 percent drop in Nigeria petrol prices

Nigerians are seeing the early benefits from Aliko Dangote’s $20 billion refinery as petrol prices fall sharply across the country. Since the Dangote Refinery began producing Premium Motor Spirit (PMS) in September 2024, the cost of petrol has dropped more than 28 percent.

Data tracked by Billionaires.Africa shows that petrol, which sold for N1,030 ($0.71) per liter in September 2024, has fallen to N739 per liter by December 2025. The drop comes amid a broader easing of inflation with the National Bureau of Statistics (NBS) reporting headline inflation in November at 14.45 percent year-on-year down from 16.05 percent in October.

Dangote secures holiday fuel supply

The refinery plans to maintain steady fuel supplies through the festive season, aiming to prevent shortages and long queues at filling stations. Dangote Petroleum said it would release 1.5 billion liters of petrol into the local market in December and another 1.5 billion liters in January 2026, roughly 50 million liters a day starting December 1.

“In line with our commitment to national well-being, we are ensuring a holiday season without fuel scarcity,” Dangote said during a visit by the South-South Development Commission. He added that production would rise to 1.7 billion liters in February, or about 60 million liters a day, noting that the plant already produces between 40 million and 45 million liters daily.

Expansion aims for 1.4 million barrels

Commissioned in 2023 with an initial capacity of 350,000 barrels per day, the Dangote Refinery commenced full petrol production in September 2024 and is scaling toward its design capacity of 650,000 barrels daily. Diesel and aviation fuel production began earlier in the year, thus supporting domestic supply and reducing Nigeria’s reliance on imported refined products.

Dangote is also moving to expand the facility further. A recent agreement with Honeywell in India will support a 750,000-barrel-per-day extension next to the current plant, potentially raising capacity to 1.4 million barrels daily. Once completed, the refinery is expected to surpass India’s Jamnagar facility as the world’s largest.

Officials estimate that the fully expanded complex could generate $55 billion in annual revenue, reduce fuel imports, and support Nigeria’s foreign-exchange reserves. Additional output will include 2.4 million metric tons of polypropylene annually, Euro VI-grade fuel, and up to 1,000 megawatts of on-site power making it one of Africa’s largest industrial projects.