Importers of Premium Motor Spirits (PMS) otherwise known as Petrol are reportedly thrown off by the Dangote refinery’s decision to reduce the price of its petrol.
- Dangote Refinery reduces the ex-depot price of petrol by N65, from N890 to N825 per liter.
- Importers are concerned as they will be forced to adjust their prices due to Dangote’s reduction.
- The decision is intended to support President Bola Tinubu’s economic recovery plan and prepare for the Ramadan season.
The Dangote Refinery, on Wednesday, announced the reduction of its ex-depot (gantry) price of petrol by N65, from N890 to N825 per liter.
This move which is to take effect on the 27th of February, has sent shockwaves across the fuel market, as importers of the product note that they have now been forced to adjust their prices as a result.
“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.
“This marks the second price reduction of PMS in February 2025, following a previous decrease of N60 earlier in the month,” it added.
To rationalize the decision, the Dangote refinery noted that the strategic price adjustment is intended to help Nigerians prepare for the Ramadan season and to support President Bola Tinubu’s economic recovery plan by easing the financial strain on the country’s citizens.
As reported by the Punch Newspaper, importers have voiced concerns, noting that the refinery’s decision to reduce petrol prices would inadvertently force them to adjust theirs, with the likelihood that “dealers might be compelled to sell below their cost prices.”
“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 who spoke to the Punch in confidence, stated.
Another dealer claimed that numerous importers will have to quit bringing in petroleum goods from other nations as a result of the Dangote refinery’s price reductions to deter gasoline importation.
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“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.
An earlier report by S&P Global indicated that 60% of all of Nigeria’s domestic petrol supply is coming from the Dangote Refinery, which while impressive, denotes that a good amount of the product is still being imported.
According to recent information, PMS’s landing cost was around N927 per liter, which is more than Dangote’s ex-depot price.
The importers said that since they have to compete effectively in the market, they have been able to sell the imported goods with little to no margin.
