Marketers rush as Dangote crashes petrol price
By Emma Okereh
Dangote Refinery has crashed its petrol loading price from ₦825 to ₦815 per litre, intensifying competition in Nigeria’s oil market.
The crash holds the potential for lower pump prices.
This latest adjustment, effective Thursday, is part of the ongoing rivalry in the country’s downstream oil sector.
This price cut follows a previous reduction announced two weeks ago, when the refinery decreased the ex-depot price of Premium Motor Spirit (PMS) from ₦890 to ₦825 per litre, effective February 27, 2025.
The recent changes have prompted a notable shift among oil marketers, many of whom are now choosing to source their products directly from Dangote Refinery rather than other suppliers.
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As of Tuesday, reports indicate that the landing cost of imported petrol in Nigeria has fallen to ₦774.72 per litre.
Industry experts believe this downward trend could lead to a reduction in the pump price of petrol to around ₦800 per litre.
Chief Ukadike Chinedu, the National Publicity Secretary of the Independent Marketers Association of Nigeria, commented, “Crude oil is a major component in fuel production, so any further decrease in its price would likely lead to a drop in petrol prices, potentially down to ₦800 per litre.”
With Dangote Refinery’s new loading cost set at ₦815 per litre, an additional ₦10 levy imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority brings the effective price to ₦825 per litre.
Chinedu Ukadike emphasized that the competition between Dangote Refinery and other suppliers is igniting a price war. He stated, “There’s speculation that the price of imported products has decreased, which is fueling this price war. It reflects the benefits of deregulation. Dangote has millions of litres and will strive to maintain its market share, prompting the price reduction.”
When approached about the recent price changes, a Dangote Refinery official, who wished to remain anonymous, stated that they were not currently aware of any price adjustments. “We don’t have any information about that at the moment, but we will seek clarification tomorrow. You can report what marketers have said, but we have no details to share as I speak,” the official remarked.
