The latest price reduction by the Dangote Petroleum Refinery has sparked concerns among petroleum product importers, who now fear losses due to increasing competition in the local market.
On Wednesday, the refinery announced a N65 reduction in the ex-depot price of petrol, bringing it down from N890 to N825 per litre, effective February 27.
According to The PUNCH, this marks the second price cut in February 2025 alone and the third within two months.
Despite a decline in fuel importation, some dealers still bring in refined products.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority recently confirmed that about 50% of the country’s fuel supply still comes from imports.
In its statement, the Dangote refinery attributed the price adjustment to its commitment to easing the financial burden on Nigerians, especially ahead of the Ramadan season.
The refinery emphasized its role in supporting President Bola Tinubu’s economic recovery initiatives.
“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,” the company stated. “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.”
The company assured Nigerians of a stable fuel supply, with ample reserves for domestic consumption and surplus for export.
Retail outlets such as MRS, Heyden, and Ardova Petroleum will now sell Dangote petrol at revised prices:
MRS Holdings Stations – N860 per litre in Lagos, N870 in the South-West, N880 in the North, and N890 in the South-South and South-East.
Ardova Petroleum & Heyden Stations – N865 per litre in Lagos, N875 in the South-West, N885 in the North, and N895 in the South-South and South-East.
While the price drop is a relief for consumers, importers of refined petroleum products are grappling with the financial impact. Some fear that continuous reductions will render fuel importation unprofitable.
One importer, speaking anonymously, admitted that selling imported petrol has become increasingly difficult.
“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,” he said.
Another retailer expressed concerns that Dangote’s pricing strategy is aimed at discouraging importation.
“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,” he stated.
National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, acknowledged the difficulties importers face.
“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,” he said.
Despite this, Ukadike welcomed the price cut, stating that independent marketers will continue to support 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 added.
National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, also praised the price reduction.
“It is a good development. PETROAN applauds that because Nigerians are going to be better for it. Congratulations to Nigerians,” he remarked.
He noted that fuel prices will continue to fluctuate due to environmental and economic factors but commended Dangote for the recent adjustment.
Beyond domestic sales, the Dangote refinery has been making waves in the international market.
The company recently exported low-sulphur fuel oil and other refined components to Fujairah, UAE. According to an S&P Global report, the shipment, transported by a VLCC-sized cargo, marks the first such trade flow from the refinery to the UAE since July 2024.
The refinery has also extended its reach to Asia, with Singapore receiving its first low-sulphur straight-run fuel oil from the company last year. More recently, the refinery sold two cargoes of aviation fuel to Saudi Aramco.
“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 Dangote Group President, Alhaji Aliko Dangote.
With production now at 550,000 barrels per day, Dangote reaffirmed that the refinery has sufficient capacity to meet Nigeria’s fuel demand while also contributing to exports.
“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.
As Nigeria’s fuel landscape continues to evolve, Dangote’s aggressive pricing strategy appears to be reshaping the industry, forcing importers to rethink their business models while offering consumers some relief at the pumps.
