Petrol Importers Face Crisis As Dangote Refinery Slashes Prices For The Third Time

Petrol Importers Face Crisis As Dangote Refinery Slashes Prices For The Third Time

Importers of petroleum products have raised concerns following the latest fuel price cut announced by Dangote Petroleum Refinery. As fuel prices continue to drop, some importers fear they may be forced to sell below cost, with consumers increasingly turning to more affordable options……..READ MORE 

On February 27, Dangote Refinery revealed a reduction in the ex-depot price of petrol by N65, bringing it down from N890 to N825 per litre. This marks the second price reduction in February alone, and the third in just two months. While imports of refined petrol have decreased, about 50% of the country’s fuel supply still comes from imports, as confirmed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The refinery stated that the price reduction is designed to ease the burden on Nigerians ahead of Ramadan and to support President Bola Tinubu’s economic recovery efforts.

Dangote Refinery’s management explained, “We’ve consistently lowered petrol prices to benefit Nigerians. This reduction, following a N60 decrease earlier this month, aims to ease the cost of living while avoiding the usual price hikes and fuel scarcity during the holiday season.”

New petrol prices will apply across Dangote’s retail partners, including MRS, Heyden, and Ardova, with varying rates depending on the region.

However, some fuel importers are struggling with the impact of Dangote’s price cuts. Importers are concerned that the reduction could make fuel imports less profitable, as their landing costs remain higher than Dangote’s ex-depot price. Some dealers are worried that they will be forced to lower their prices, leading to financial losses.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) warned that Dangote’s continued price cuts could drive importers out of business. Despite these concerns, IPMAN has expressed support for local refineries and commended Dangote’s efforts.

According to IPMAN’s National Publicity Secretary, Chinedu Ukadike, “While the price cuts may hurt importers, we welcome the development as it boosts local production and benefits Nigerians. However, we need to focus on improving distribution to ensure a steady supply of fuel across the country.”

Industry leaders, including Billy Gillis-Harry, President of PETROAN, also praised Dangote’s move, saying that it would ultimately benefit Nigerians, though acknowledging that fuel prices will remain subject to fluctuations.