Importers of petroleum products have expressed concerns over the continuous reduction of petrol prices by Dangote Petroleum Refinery.
Naijaonpoint understands that some importers fear that dealers may be forced to sell below their cost prices, as consumers are likely to purchase fuel from more affordable sources.
On Wednesday, Dangote Refinery announced a reduction in the ex-depot price of petrol by N65, lowering it from N890 to N825 per litre. This adjustment, effective February 27, marks the second price cut this year and the third within two months.
Although fuel imports have declined, some dealers continue to bring in refined petroleum products. Last week, the Nigerian Midstream and Downstream Petroleum Regulatory Authority confirmed that approximately 50% of the country’s fuel supply still comes from imports.
Dangote Refinery’s management explained that the price adjustment aims to provide relief to Nigerians ahead of Ramadan while supporting President Bola Tinubu’s economic recovery plan.
“It is important to note that Dangote Petroleum Refinery has consistently lowered the prices of petrol and other refined petroleum products to the benefit of Nigerians. This marks the second price reduction of PMS in February 2025, following a previous decrease of N60 earlier in the month.
“Additionally, in December 2024, during the yuletide period, the refinery reduced the price of PMS by N70.50, from N970 to N899.50 per litre, as part of its commitment to easing the cost of living and providing relief to Nigerians during the holiday season.
“This reduction has positively impacted the overall cost of living, benefiting various sectors of the economy, and has also ensured that Nigerians did not experience the perennial fuel scarcity and price hikes typically associated with the yuletide season,” Dangote Refinery said.
The refinery also announced that Nigerians can now purchase petrol at new rates from its partners, including MRS, Heyden, and Ardova.
“Nigerians will be able to purchase the high-quality Dangote petrol at the following prices in all our partners’ retail outlets. For MRS Holdings stations, it will sell for N860 per litre in Lagos; N870 per litre in the South-West, N880 per litre in the North, and N890 per litre in the South-South and South-East respectively.
“The same product will also be available at the following prices in Ardova Petroleum and Heyden stations: N865 per litre in Lagos, N875 per litre in the South-West, N885 per litre in the North, and N895 per litre in the South-South and South-East.”
The refinery assured the public of a steady supply of petroleum products, with sufficient reserves to meet domestic demand and surplus for export to support the country’s foreign exchange earnings.
It added: “The company calls on marketers to support this initiative, ensuring that Nigerians remain the primary beneficiaries of this effort. This collective action will contribute to the broader economic recovery plan led by President Bola Tinubu, who is committed to making Nigeria self-sufficient in refined petroleum products and establishing the country as a leading oil export hub.”
Fuel Importers Face Challenges
While many Nigerians welcome the price reduction, fuel importers are grappling with its impact on their businesses.
Some importers pointed out that Dangote Refinery’s continuous price cuts are making fuel importation less viable.
Reports indicate that the landing cost of PMS stood at around N927 per litre last week—higher than Dangote’s ex-depot price. Importers claim they are struggling to sell their products with minimal or no profit margins to remain competitive.
“Some of us who have imported PMS are feeling the heat of Dangote’s decision to slash prices. Though it is a good thing to reduce petrol price, it is taking a toll on our business. That’s the simple truth,” a dealer disclosed to The PUNCH.
Another retailer highlighted concerns that Dangote’s strategy could discourage fuel importation, forcing many importers to stop bringing in petroleum product.
He said: “Dangote understands the competition in the business and this latest reduction will further discourage fuel imports. There will be losses as we may have to drop our prices too. At the end of the day, some of us will source our products locally. I will just advise Dangote to create a level playing field for all.”
The Independent Petroleum Marketers Association of Nigeria (IPMAN) acknowledged that the price reduction could result in losses for importers.
“Dangote may ‘kill’ fuel importers by this continued lowering of prices. All those importers who have challenged Dangote that they wanted to import cheaper fuel, as they’re just nearing the seashore, Dangote will reduce the price and they will run into trouble,” said IPMAN’s National Publicity Secretary, Chinedu Ukadike, expressing his personal opinion.
Despite this, IPMAN welcomed the development and reiterated its support for local refineries.
Ukadike said: “It is a welcome development. We laud Dangote’s achievement of bringing the 650,000 single-train refinery to Nigeria. Independent marketers have justified supporting the removal of subsidies and supporting our local companies. We will continue to patronise Dangote via MRS, and we will do everything possible to support them.”
Ukadike emphasized that petrol supply is no longer an issue and urged the government to repair depots and pipelines to improve distribution.
He said: “Our problem now is distribution. We want all the satellite depots to be in place and the pipelines repaired so that this product can be sent to the nooks and crannies of this country seamlessly. That will also further reduce the price. So, as independent marketers, we welcome the development of the Dangote refinery petrochemical mine. Wherever the product is cheap, we definitely will buy it.
“Also, it is giving us a choice of availability. So, we can buy from Dangote, we can also buy from the Nigerian National Petroleum Company Limited.”
Similarly, Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), praised Dangote for the move.
He said: “It is a good development. PETROAN applauds that because Nigerians are going to be better for it. Congratulations to Nigerians.”
He noted that fuel prices would remain dynamic, shaped by environmental and economic factors.
“The price will keep fluctuating, it will not be static. N825 per litre is welcome, and we salute Dangote for that.”