Two weeks after Dangote Refinery slashed its ex-depot petrol price by ₦25 per litre, most filling stations across Nigeria are still selling at the old rate. Why the delay?

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) says it's not that simple.

Speaking on Channels Television's The Morning Brief on Wednesday, PETROAN President Billy Gilly-Harry explained that retail prices depend on more than just the refinery gate price. "Prices reflecting are dependent on availability, cost, and preparing the particular petroleum to be delivered to the people," he said.

He pointed out that price increases often hit immediately because dealers need to restock. But decreases take time because the fuel already in storage was bought at the higher price. "That's the basic idea," he said. "In petroleum, a mixture is involved, and loss is taken, though not in a way that affects the capital needed to restock."

Energy analyst Olabode Sowunmi added another layer. He said global crude oil prices don't always drive local pump prices the way people assume. "Global price of crude oil is a factor but a factor internationally and not necessarily in Nigeria," he said.

His reason: Dangote Refinery has an agreement with the government to supply a portion of its crude at a fixed naira price. That arrangement insulates local pricing from international volatility. "So basically our cost issues in terms of reflecting to the final person deal with our own logistics rather than the geopolitics that is taking place at the moment," Sowunmi said.

He said the real bottleneck is internal — trucking, storage, and distribution costs. And when asked why logistics seem to matter more when prices are supposed to fall than when they rise, he was blunt: "It all comes down to the seller."

Dangote Petroleum Refinery & Petrochemicals announced the reduction on June 3, 2026. The ex-depot price of Premium Motor Spirit (PMS) — petrol — went from ₦1,275 per litre to ₦1,250. Automotive Gas Oil (AGO), or diesel, dropped from ₦1,800 to ₦1,700.

In its statement, the refinery said the cut was part of "continued efforts to improve supply efficiency, deepen domestic refining, and provide cost relief to consumers and businesses."

But for now, most Nigerians filling their tanks haven't felt any relief. Until stations exhaust their old stock bought at the higher price, the pump price stays put.

"Petroleum is concerned with making Nigeria better," Gilly-Harry said.

  • Dangote Refinery cut ex-depot petrol price by ₦25 (from ₦1,275 to ₦1,250/litre) on June 3, 2026.
  • Diesel price cut by ₦100 (from ₦1,800 to ₦1,700/litre).
  • PETROAN says existing stock bought at old price must be sold first.
  • Analyst says logistics costs — not global crude — are the main factor in Nigeria.
  • Dangote Refinery supplies a portion of its crude at a fixed naira price under a government agreement.