For the second time this February, Dangote Refinery has reduced the ex-depot price of petrol. They cut it by N65 per litre. The new price now stands at N825 per litre, down from N890 per litre. This is the third price reduction in two months, bringing total savings for Nigerians to N125 per litre since January.
Why the Price Cut?
A statement by Dangote Refinery management explained that the strategic price adjustment aims to provide relief to Nigerians ahead of Ramadan, while also supporting President Bola Tinubu’s economic recovery plan. The refinery emphasized that its continuous price slashes have helped stabilize supply, prevent fuel scarcity, and ease transportation costs for Nigerians.
How Much Will Nigerians Pay at the Pump?
Dangote’s latest price adjustment means Nigerians can now buy petrol at the following prices at partner stations:
- Lagos: N860 per litre
- South-West: N870 per litre
- North: N880 per litre
- South-South & South-East: N890 per litre
MRS, Heyden, and Ardova Petroleum are among the major distributors of Dangote petrol.
Fuel Importers Cry Out Over Dangote’s Price Reductions
While Nigerians are celebrating the price drop, fuel importers are lamenting the impact on their business. According to reports, dealers may be forced to sell below cost price, as consumers will naturally prefer cheaper fuel from Dangote.
Despite a drop in fuel importation, some dealers still rely on imported petrol. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently confirmed that about 50% of Nigeria’s fuel supply still comes from imports. However, Dangote’s aggressive price cuts are making importation less attractive.
An industry source disclosed that the landing cost of PMS was about N927 per litre last week, making it more expensive than Dangote’s ex-depot price. Importers say they have been struggling to sell at a profit.
“Some of us who import PMS are feeling the heat of Dangote’s price slashes. Yes, it’s good for Nigerians, but it’s bad for our business,” an importer said in confidence.
Another retailer claimed that Dangote is deliberately discouraging fuel importation. “With this latest price drop, many will be forced to stop importing fuel. We may even have to sell at a loss just to compete,” he stated.
IPMAN and PETROAN React
Despite concerns from fuel importers, the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) have welcomed the development.
The National Publicity Secretary of IPMAN, Chinedu Ukadike, admitted that importers might suffer losses but acknowledged that Dangote is taking full advantage of deregulation.
“Dangote may ‘kill’ fuel importers with these continuous price reductions. They keep lowering prices, making it difficult for importers to compete,” Ukadike said. However, he assured that IPMAN will continue patronizing Dangote Refinery, calling on the government to fix fuel depots and pipelines to improve distribution.
Similarly, PETROAN President, Billy Gillis-Harry, commended Dangote, describing the price drop as a win for Nigerians.
“It’s a good development. The price will continue to fluctuate, but for now, Nigerians will benefit. We salute Dangote for this,” he stated.
What’s Next?
The refinery assured Nigerians of consistent fuel supply and hinted at more price reductions in the future. With enough fuel reserves to meet domestic demand and even export to boost forex earnings, Dangote Refinery is reshaping Nigeria’s oil market.
As fuel importers count their losses, Nigerians continue to enjoy cheaper fuel prices. The question remains: Will importers survive this new era of Dangote dominance, or is this the beginning of the end for imported fuel in Nigeria?