This was as fresh industry data revealed that the average landing cost of a litre of imported petrol is now N33.33 higher than the revised ex-depot price offered by the Dangote Petroleum Refinery. This sharp disparity is expected to tilt market dynamics in favour of the local producer, potentially sidelining fuel importers in the Nigerian market.
However, the new financial loss to be incurred is an 81 per cent reduction from an average of N2.5bn daily and N75bn monthly lost in March due to price fluctuations.
The development is linked to a decline in petrol imports by marketers and a narrowing price gap between imported and locally refined fuel.
Industry stakeholders note that this development could mark a pivotal shift in Nigeria’s petroleum supply chain, as the Dangote Refinery asserts its pricing influence and reshapes competition.
Recall that the refinery, confirming an exclusive report by our correspondent last Wednesday, announced its third price adjustment in six weeks, moving its ex-depot price downward by N30 to N835 per litre. This marked a 3.5 per cent decrease, and a N45 reduction from the N880 per litre sold by the facility penultimate Wednesday.
It disclosed that Nigerians will now buy at new prices from its partners nationwide, including MRS, AP (Ardova), Heyden, Optima Energy, Hyde and Tecno Oil.
The statement read, “Dangote Petroleum Refinery is pleased to announce a reduction in the gantry price of Premium Motor Spirit, commonly known as petrol, from N865 to N835, effective from Wednesday, 16th April 2025. This marks the second price reduction within a week.
“Key partners, including MRS, AP (Ardova), Heyden, Optima Energy, Hyde and Tecno Oil, will offer petrol at N890 per litre, down from N920 in Lagos. In the South-West, the price will be N900 per litre, reduced from N930.
“In the North-West and North-Central, the price will be N910 per litre, lowered from N940. In the South-East, South-South, and North-East, the price will be N920 per litre, down from N950.”
Weighing in on the development, Petroleum products marketers hinted that they are on track to lose billions of naira as they may be forced to sell petrol far below their costs.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, who lauded the adjustment in the gantry prices of Dangote Petrol, however, lamented that marketers who have old stocks have to sell at a loss.
“It is a good development for Nigerians; however, marketers with the old price stock will have to lose billions of naira. It is affecting marketers, but based on the naira-for-crude, the effect must be reflected in the pump price,” he said in an interview.
The PUNCH findings have now revealed that importing marketers, who are primarily members of the Depot and Petroleum Products Marketers Association of Nigeria, will likely lose an average of N466.62m daily and N13.998bn monthly.
According to the Major Energies Marketers Association of Nigeria, the landing cost of petrol as of Wednesday, April 16, was N868.33 per litre. This is N33.33 above the N835 ex-depot price of PMS at the Dangote refinery.
Punch
