The downward adjustment of the price of petrol by Dangote Petroleum Refinery from N828 to N699 per litre has triggered a wave of mixed reactions among motorists, transport operators and commuters in Lagos as they appraised the economic impact of the company's latest intervention in the downstream sector.
It is noteworthy that Dangote Refinery has over time embarked on a cost reduction strategy aimed at delivering tangible savings to Nigerians.
It would be recalled that in December 2024, the company adjusted petrol price from N970 to N899.50 in what it described as holiday Bonanza.
On February 1,2025, it was reduced by N60.00 to N890.00 and on February 26,2025, it was slashed for the second time by N65 below previous N890 price thereby bringing down the price to .
Keep up with the latest headlines on WhatsApp | LinkedIn
According to findings ex-depot price decreased from N950.00 in January to current price of N825.00 representing a reduction of N125 per litre within 26 days.
In the month of April this year the price was reduced twice, first from N865 N835 and on April 16, it was slashed from N865.00 to N835.00.
The latest cut to N699, according to industry analysts, is the refinery's strongest pricing move since it commenced operations, and is widely seen as an attempt to ease pressure on households battling persistent cost-of-living challenges.
As plausible as the reduction of pms looked, many Lagos transporters who spoke with LEADERSHIP Weekend took the reduction with a blend of relief, skepticism and indifference.
At the motor park of Eko Hotel roundabout in Victoria Island, a commercial bus driver who identified himself as Ganiyu Adebayo described the new price as a good step that will help drivers breathe.
He told LEADERSHIP Weekend, "Rising operational costs over the last year had forced drivers to increase fares repeatedly. If petrol is now N699, at least it reduces our daily expenses. We are not yet where we want to be, but this one makes sense".
But not all transporters feel the same way. Another driver, Tunde Samuel who plies the Yaba-CMS route, argued that the drop might not translate to lower fares immediately, saying, "Fuel is cheaper, yes, but prices of spare parts, tickets and union levies are still high. People should not expect magic."
For some Lagos motorists now using Compressed Natural Gas (CNG), the PMS reduction carries little weight. A ride-hailing driver, Oluwatobi Ajisebutu, said, "Most of us converted to CNG when petrol crossed N800. So this reduction doesn't change much for me based on the distance of the passengers. I only buy PMS for emergencies."
Commuters also expressed divergent views. At Berger bus stop, Fabric seller Chinenye Okoli, welcomed the reduction.
She said, "This could ease the financial burden on families. This is December and you know how Nigerians love to travel no matter the insecurity issues people will have and though it's a small relief, it is still a relief. If transportation can be reduced with time, it will help us a lot."
Another commuter, Joseph Balogun, was less enthusiastic. He argued that past reductions did not lead to any tangible changes in fare prices, saying, "Every time fuel drops, transporters look the other way. I don't want to celebrate what I haven't felt."
The National Union of Road Transport Workers (NURTW) also weighed in on the development. At Iyana Oworo, union official who identified himself as Mosafejo said the union is pleased that Nigerians finally have some respite after months of economic strain.
"This new price shows progress. Nigerians have suffered enough, this is good news for everyone if it is true", he said.
When asked whether the union will instruct motorists to reduce transport fares, Mosafejo explained that directives must align with operational realities.
"We will speak to our members, but reductions depend on whether the new fuel price is stable and sustainable. If the market holds at N699, then definitely we expect fares to reflect that in due course.
We care about the passengers, but we must also protect drivers whose costs are still high," he stated.
Meanwhile, public analyst Ayodeji Ake remarked, "The move could have a moderating effect on inflation if sustained, especially in transportation, a sector that significantly influences consumer prices nationwide. However, the full benefits may not be immediate due to lingering high costs in logistics, vehicle maintenance and imported spare parts."
Responding to the price adjustment, President of a Non -Governmental Organisation, Legacy Museum and former Director of Public Relations NIPOST, Mr. Taiye Olaniyi said ordinarily the reduction in depot price of petrol should reflect in the final cost of transport fares depending on distance, if the appropriate stakeholders are well informed.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
He called for public enlightenment, cooperation and patriotism of all stakeholders involved in transport logistics to reduce the current cost of transport fares.
Olaniyi averred that "if it is not just an ephemeral policy criteria the better for us all"
The Former Secretary General, National Union of Road Transport Workers Comrade, Paul Ogini averred that the reduction in pump price of fuel will only have a marginal impact in cost of food items but not transport fares.
He said that it will be difficult to convince drivers who were already used to collecting say ₦1,000 from Agbado to Oshodi to reduce the fare to N800.00 adding that it can only be possible if governments regulate the cost of transportation.
Former Secretary General, Nigerian Union of Railway Workers Mr. Segun Esan welcomed the decision of Dangote Refinery to reduce cost of petrol saying the influence of price reduction can only be felt if there is adequate supply of fuel.
He noted that if there is adequate supply of fuel, the cost of fuel will drop, adding that such development will have a ripple effect on the cost of moving goods and passengers.
