Why Marketers May Lose N14 Billion After Dangote Petrol Price Cut
THECONSCIENCE NG reports that following the recent reduction in the ex-gantry price of locally refined Premium Motor Spirit (petrol) announced by the Dangote Petroleum Refinery, importers could face losses averaging N466.62 million daily and N13.998 billion monthly.
Fresh industry data indicates that the average landing cost of a litre of imported petrol is now N33.33 higher than the new ex-depot price set by Dangote, which is likely to favour local producers and disadvantage fuel importers.
This financial impact marks an 81% decrease from the losses experienced in March, which averaged N2.5 billion daily and N75 billion monthly due to fluctuating prices.
The shift is attributed to a decline in petrol imports and a narrowing price gap between imported and locally refined fuel.
The Dangote Refinery recently announced its third price adjustment in six weeks, lowering its ex-depot price by N30 to N835 per litre. This decrease will affect prices at partner stations nationwide, with various regional price adjustments.
Industry stakeholders have expressed concern that marketers with existing stock will have to sell at a loss, impacting their finances significantly.
According to the Major Energies Marketers Association of Nigeria, the landing cost of petrol as of mid-April is N868.33 per litre, exceeding Dangote’s ex-depot price.
Furthermore, the Nigerian Midstream and Downstream Petroleum Regulatory Authority reported that petrol imports have dropped drastically from 44.6 million litres per day in August 2024 to 14.7 million litres as of mid-April 2025 due to increased local refining capacity.
In summary, the price cuts by Dangote could lead to substantial financial losses for petrol importers, prompting concerns about the sustainability of their business models in light of increasing local production and fluctuating market conditions.
The Nigerian National Petroleum Company has also reduced its petrol price, further impacting the competitive landscape.
