Petroleum product importers have expressed concern over the continuous reduction of petrol prices by the Dangote Petroleum Refinery.
Some importers warned that dealers might be forced to sell below their cost prices, as consumers would naturally prefer to buy from sources offering cheaper petrol.
On Wednesday, the Dangote Refinery announced a reduction in the ex-depot (gantry) price of petrol by N65, lowering it from N890 to N825 per litre, effective today, February 27. This marks the second price cut this year and the third within two months.
While petrol importation has declined, some dealers continue to bring in refined petroleum products. This was confirmed last week by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which stated that imports still account for about 50 percent of the country’s domestic fuel supply.
A statement by the management of the Dangote refinery said the strategic price adjustment is designed to provide essential relief to Nigerians in anticipation of the upcoming Ramadan season, while also supporting President Bola Tinubu’s economic recovery policy by alleviating the financial burden on the Nigerian populace.
“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,” the company stated.
It disclosed that Nigerians will now buy at new prices from its partners nationwide, 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 company said.
The refinery has assured the public of a steady supply of petroleum products, with sufficient reserves to meet domestic demand and a surplus for export, aimed at boosting the country’s foreign exchange earnings.
“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,” the statement concluded.
While Nigerians celebrate the recent price cuts, fuel importers are feeling the impact on their businesses.
Some importers noted that the Dangote Refinery’s frequent reductions in petrol and diesel prices are gradually making importation less viable. Reports indicate that the landing cost of PMS was around N927 per litre last week—higher than Dangote’s ex-depot price.
As a result, importers have been struggling to sell their products with little to no profit margin to stay competitive in the market.
In an interview, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, acknowledged that importers might face losses due to the latest price reduction.
He emphasized that the price cut would have a significant impact on importers, noting that Dangote was leveraging the benefits of deregulation to its advantage.
Similarly, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, also commended Dangote for the new development.
“It is a good development. PETROAN applauds that because Nigerians are going to be better for it. Congratulations to Nigerians,” Gillis-Harry said.
He stressed that environmental and economic factors will determine the price, going forward.
“The price will keep fluctuating, it will not be static. N825 per litre is welcome, and we salute Dangote for that,” he submitted.
