Importers of petroleum products have lamented the repeated reduction of petrol prices by the Dangote Petroleum Refinery, The PUNCH reports.
Some of the importers said dealers might be compelled to sell below their cost prices as consumers would only buy from where petrol is cheaper.
On Wednesday, the Dangote refinery announced a reduction in the ex-depot (gantry) price of petrol by N65, from N890 to N825 per litre, effective from today, February 27. This is the second price reduction in the new year, and the third one in a space of two months.
Although the importation of the commodity has dropped, some dealers still import refined petroleum products. This was confirmed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority last week after it stated that about 50 per cent of domestic fuel supply comes from imports.
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 assures the public of a consistent supply of petroleum products, with sufficient reserves to meet domestic demand, and a surplus for export to enhance 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.
However, as Nigerians rejoice over the price slash, fuel importers seem to be counting the effect this will have on their business.
According to some of them, the Dangote refinery is gradually making importation less attractive with how it has dropped the prices of petrol and diesel lately.
It was gathered that the landing cost of PMS was around N927 a litre in the past week, an amount higher than the ex-depot price of the Dangote.
The importers said they have been managing to sell the imported products with little or no margin due to the need to compete well in the market.
“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 who spoke to our correspondent in confidence due to the nature of the matter, stated.
Another retailer noted that the Dangote refinery is reducing prices to discourage fuel importation, saying many will have to stop bringing in petroleum products from other countries.
“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 retailer stated.
In an interview, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, confirmed that importers may incur losses as a result of the new price reduction.
Ukadike maintained that the price reduction would affect importers, stressing that Dangote was maximising the advantages of deregulation.
“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 sea shore, Dangote will reduce the price and they will run into trouble,” Ukadike stated in his personal opinion.
Speaking on behalf of IPMAN, he described the price slash as a welcome development, saying the association will continue to patronise the refinery.
“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,” he stated.
He pointed out that the availability of petrol is no longer an issue, asking the government to fix the depots and the pipelines.
“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,” he added.
He posited that the price reduction would reduce marketers’ huge investment, increasing their purchasing power.
“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,” he maintained.
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.
Dangote exports fuel
Meanwhile, the Dangote refinery has exported straight-run low-sulphur fuel oil and other feedstock components to Fujairah, a city in the United Arab Emirates.
A report by S&P Global stated that the products were conveyed by a Vlcc-sized cargo. The cargo is expected to arrive in Fujairah this week, the report stated.
Low Sulfur Fuel Oil is obtained through fractional distillation of crude oil. It is commonly used as bunker fuel or for running boilers and furnaces in various industries, including textile and cement manufacturing.
LSFO is also used to power ships that travel in Emission Control Areas where sulphur emissions are limited. It can also be blended to produce other fuel like petrol.
“A VLCC-sized cargo, consisting of straight-run LSFO and other feedstock components, sourced from Nigeria’s Dangote refinery, is expected to arrive in Fujairah in the week, marking the first such replenishment flow since July 2024, according to industry sources,” S&P Global said.
Last year, Singapore, Asia’s oil hub, received its first low-sulphur straight-run fuel oil from the Dangote refinery, marking a new trade flow from the refinery to Asia.
Recently, the Dangote refinery sold two cargoes of aviation fuel to Saudi Aramco, the national oil company of Saudi Arabia.
“We are reaching the ambitious goals we set for ourselves, and I’m pleased to announce that we’ve just sold two cargoes of jet fuel to Saudi Aramco,” said the President of the Dangote Group, Alhaji Aliko Dangote, adding that since its production began in 2024, the refinery has steadily increased its output, now reaching 550,000 barrels per day.
Amid claims that local refineries could not satisfy local needs, Dangote revealed on Saturday that the refinery had over 500 million litres of premium motor spirit in its tanks, saying it has stocks worth over N600bn.
He boasted that the refinery would meet local demand and export to other countries.
“We can satisfy more than the local needs of Nigeria. As we speak, we have more than half a billion litres (of petrol). We have more than N600bn worth of stocks here today in the refinery. We have more than enough. The refinery is producing enough refined products, like gasoline, diesel, and kerosene, to meet 100 per cent of Nigeria’s requirements,” he stated.
Speaking about fuel quality, Africa’s richest man disclosed that refineries worldwide are shutting down because of the Dangote refinery.
