Petroleum marketers in Nigeria are bracing for significant financial losses after Dangote Refinery announced another reduction in the ex-depot price of premium motor spirit (PMS).
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), revealed in an interview on Thursday that dealers could lose billions of naira as a result of the new pricing, particularly those holding older stock purchased at higher rates.
On Wednesday, Dangote Refinery reduced its petrol gantry price to ₦835 per litre, down ₦30 from the previous ₦865 per litre. This marks the second price cut in just eight days, following the renewal of the Naira-for-Crude exchange arrangement on April 9, 2025.
New Regional Retail Prices
According to a statement from Anthony Chiejiena, spokesperson for the Dangote Group, the revised prices will be reflected by the refinery’s retail partners, including MRS, Ardova (AP), Heyden, Optima Energy, Hyde, and Techno Oil, with the following price changes:
Lagos: ₦890/litre (down from ₦920)
South-West, North-West, and North-Central: ₦900–₦910/litre (down from ₦930–₦940) South-East, South-South, and North-East: ₦920/litre (down from ₦950)
Chiejiena emphasized that the price cuts are intended to make fuel more affordable for Nigerians and stimulate economic activity by easing transportation costs. He noted the reductions should have a “positive ripple effect” on various sectors, especially during the Easter season.
Total Price Drop in Eight Days
Dangote had previously lowered its ex-depot price from ₦880 to ₦865 per litre, and with the latest reduction to ₦835, the total drop within just over a week now stands at ₦45 per litre.
Mixed Reactions from Stakeholders
Ukadike praised the reduction as beneficial to consumers but raised concerns about the impact on marketers with fuel purchased at previous higher prices, who must now sell at a loss to remain competitive. He noted that the naira-for-crude arrangement and declining global crude oil prices have enabled Dangote Refinery to make such cuts.
Similarly, Billy Gillis-Harry, President of the Petroleum Retailers Outlets Owners Association of Nigeria (PETROAN), expressed dissatisfaction with what he described as “arbitrary price cuts” by Dangote. He called for a six-month price stabilization strategy to allow marketers to adjust without incurring steep losses.
Competitive Edge Over Fuel Imports
Dangote’s new pricing gives it a significant advantage over fuel importers. As of April 14, 2025, the landing cost for imported petrol was ₦845.70 per litre, based on a Brent crude benchmark of $64.88 per barrel and an exchange rate of ₦1,604.48 to $1, according to data from the Major Energies Marketers Association of Nigeria (MEMAN).
With Dangote’s gantry price now at ₦830, it offers a more cost-effective option for marketers, reinforcing its competitive position in Nigeria’s downstream oil sector.
NNPC Yet to React
So far, the Nigerian National Petroleum Company Limited (NNPC) has not responded to Dangote’s pricing move. As of Wednesday night, NNPC retail stations were still selling petrol at ₦950 per litre, well above Dangote’s suggested rates.
Refinery Boosts Domestic Supply
The Nigerian Midstream and Downstream Petroleum Regulatory Authority revealed that increased local output from Dangote Refinery has significantly reduced Nigeria’s fuel import volumes by 30 million litres. This development is seen as a positive step towards reducing dependency on imports and strengthening the country’s energy security.