Despite a recent price reduction by the Dangote Petroleum Refinery, Nigerians have yet to feel any relief at the fuel pumps as many independent and major marketers continue to sell petrol at the previous high rates. This comes after the refinery announced a cut in its ex-depot price of petrol from N880 to N840 per litre effective June 30.
Anthony Chiejina, spokesperson for the Dangote Group, confirmed the new price regime, which was expected to provide much-needed relief for consumers reeling from surging transportation costs. However, checks conducted by ireportmedia across several states including Lagos, Ogun, and other parts of the South-West revealed that most filling stations retained old prices, selling petrol between N920 and N935 per litre.
While major depots such as RainOil, Pinnacle, Matrix, and Emadeb reportedly adjusted their prices to around N845, many filling stations have yet to follow suit. Even retail outlets operated by the Nigerian National Petroleum Company Limited (NNPCL) continued to sell petrol at N915 in Lagos and N925 in Ogun as of Tuesday.
Industry leaders attribute the stall in price adjustment to unsold fuel bought at the previous higher rate. According to the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, it would be economically unfeasible for marketers to sell at a loss.
“If you bought 45,000 litres at N920 and now it’s N840, that’s an N80 loss per litre,” Gillis-Harry explained. “Multiply that, and you’re looking at a loss of over N3.6 million. No rational business would absorb such a loss.”
He added that prices would only begin to fall once the older, higher-priced inventory is completely sold out. “We need to exhaust existing stocks before any downward adjustment. Selling at a loss would cripple our ability to restock,” he noted.
Yet, the delay has sparked public frustration, especially as global crude oil prices dropped significantly due to easing tensions in the Middle East. Following the recent ceasefire between Israel and Iran, Brent crude plunged to $67 per barrel, while West Texas Intermediate fell to $65 per barrel—down from over $77 and $73 respectively.
Despite this, some analysts questioned why the Dangote refinery didn’t return its ex-depot price to the earlier N825/litre instead of N840. Others called for regulatory intervention to prevent arbitrary pricing and ensure that the benefits of falling crude prices are passed on to Nigerian consumers.
The Crude Oil Refinery Owners Association of Nigeria also weighed in, with spokesman Eche Idoko predicting that pump prices would drop within a week or two once market equilibrium is restored. “It’s not rocket science. Once the old stock is sold and crude prices stabilize, prices will drop,” he assured.
Still, the price disparity is glaring across regions. In northern Nigeria, the pump price still hovers between N955 and N980 per litre, partly due to longer distribution routes and logistics costs. MRS stations, a key Dangote partner, have maintained prices as high as N955 in the South-East and N935 in the South-West despite the reduction in gantry prices.
This has prompted calls from PETROAN for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce a six-month price stability window. Such a move, stakeholders argue, would protect marketers from recurrent losses and create a more predictable pricing structure for consumers.
In the meantime, consumers are left grappling with the burden of high fuel prices despite the apparent room for relief. As one Lagos resident put it, “If the refinery has reduced prices, we should see that at the pump—not just in headlines.”
As the nation waits for old stocks to deplete and marketers to restock at the new rate, the coming days will reveal whether the price reduction by Dangote will finally filter down to ordinary Nigerians—or if retail politics will once again override public benefit.