The recent reduction in petrol prices by the Dangote Petroleum Refinery has sparked concerns among fuel importers, who are already feeling the heat of the new development.
The refinery announced a reduction in the ex-depot price of petrol by N65, from N890 to N825 per litre, effective February 27, 2025 .
This move has been hailed as a welcome development by many Nigerians, who will benefit from the reduced prices. However, fuel importers are worried that the price slash will make it difficult for them to compete with the Dangote refinery, which is already producing high-quality petrol at a lower cost.
Some importers have lamented that they will incur losses as a result of the price reduction, as they will be forced to sell their products at a lower price to remain competitive. The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, confirmed that importers may incur losses due to the price reduction.
Despite the concerns raised by importers, the Dangote refinery has assured the public of a consistent supply of petroleum products, with sufficient reserves to meet domestic demand and a surplus for export to enhance the country’s foreign exchange earnings.
The refinery has also commended the government for its efforts in creating a conducive business environment, which has enabled the refinery to produce high-quality petrol at a lower cost. The refinery’s management stated that the price reduction is designed to provide essential relief to Nigerians, particularly in anticipation of the upcoming Ramadan season.
In related news, the Dangote refinery has exported straight-run low-sulphur fuel oil and other feedstock components to Fujairah, a city in the United Arab Emirates. This marks the first such replenishment flow since July 2024, according to industry sources.
The refinery has also sold two cargoes of aviation fuel to Saudi Aramco, the national oil company of Saudi Arabia. The President of the Dangote Group, Alhaji Aliko Dangote, disclosed that the refinery has over 500 million litres of premium motor spirit in its tanks, worth over N600bn.
Dangote boasted that the refinery would meet local demand and export to other countries, stating that refineries worldwide are shutting down because of the Dangote refinery.