The Dangote Petroleum Refinery has announced a petrol price reduction from N890 to N825 per litre, starting Thursday, February 27, 2025.

In a statement released on Wednesday, February 27, 2025, the refinery said the price cut was aimed at helping Nigerians, especially with Ramadan around the corner. The reduction is expected to affect transportation, the cost of goods, and the overall economy.

“Dangote Petroleum Refinery has announced a reduction in the ex-depot (gantry) price of Premium Motor Spirit (PMS), commonly referred to as petrol, by N65.00, from N890 to N825 per litre, effective from 27th February 2025.

With petrol now cheaper, transport fares could go down, which may also reduce the price of food and other essential goods.

Since many businesses rely on fuel to transport and preserve their goods, lower fuel prices could also help them save money and possibly keep product prices stable.

This move may also put pressure on other fuel sellers, including the Nigerian National Petroleum Company Limited (NNPCL) and other independent marketers, to also lower their prices. If this happens, petrol could become more affordable for everyone.

Another possible effect is on the value of the naira. Since Nigeria imports a lot of fuel, a local refinery supplying petrol at a lower price could reduce the need for dollars, which may help stabilize the exchange rate.

Some experts also believe the price cut could reduce petrol smuggling to neighboring countries, where fuel is often more expensive.

However, since the government earns tax from fuel sales, lower prices might mean less tax revenue. But if more people buy petrol due to the price drop, the government could still make up for the loss through higher sales.

With this new price, Nigerians may feel some relief from the high cost of living, but whether the price remains low or drops further depends on future market conditions