The recent price reduction of petrol by the Dangote Petroleum Refinery has sparked concerns among fuel importers, who may incur losses due to the decreased prices.
The refinery announced a reduction in the ex-depot price of petrol by N65, from N890 to N825 per litre, effective February 27. This marks the second price reduction in the new year and the third in two months.
The strategic price adjustment aims to provide relief to Nigerians ahead of the upcoming Ramadan season and support President Bola Tinubu’s economic recovery policy. “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 refinery stated.
However, fuel importers are feeling the heat, as the reduced prices make importation less attractive. “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 confessed.
Another retailer noted that the Dangote refinery is reducing prices to discourage fuel 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,” the retailer stated.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, confirmed that importers may incur losses due to the price reduction. “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.
The refinery has assured the public of a consistent supply of petroleum products, with sufficient reserves to meet domestic demand and a surplus for export. The company has called on marketers to support this initiative, ensuring that Nigerians remain the primary beneficiaries of this effort.
