Following a recent reduction in petrol prices, Dangote Refinery is projected to incur a loss of approximately ₦32.5 billion.
Prior to the price cut, the refinery held a stock of 500 million litres of Premium Motor Spirit (PMS), valued at ₦445 billion when priced at ₦890 per litre.
With the ex-depot price now reduced to ₦825 per litre, the total value of this stock decreases to ₦412.5 billion, resulting in the anticipated loss.
This price reduction is part of a series of adjustments by Dangote Refinery aimed at alleviating fuel costs for Nigerians. In December 2024, the refinery decreased the ex-depot price of petrol by ₦70.50, bringing it down from ₦970 to ₦899.50 per litre.
Similarly, in November 2024, the refinery reduced the price from ₦990 to ₦970 per litre to express gratitude towards Nigerians for their unwavering support.
These strategic price cuts have not only impacted Dangote Refinery’s revenues but have also influenced the broader petroleum market in Nigeria.
Fuel importers and marketers have expressed concerns over reduced profit margins, as they are compelled to adjust their prices to remain competitive.
The consistent price reductions by Dangote Refinery are gradually making fuel importation less attractive, prompting importers to reassess their strategies in the Nigerian market.
