The recent decision by Dangote Petroleum Refinery to reduce its ex-depot petrol price from ₦890 to ₦825 per liter has significantly impacted fuel importers in Nigeria.
This price adjustment, effective February 27, 2025, aims to alleviate financial pressures on consumers ahead of the Ramadan season and support President Bola Tinubu’s economic recovery plan.
Importers of Premium Motor Spirit (PMS) are facing substantial financial challenges due to the price disparity. With the landing cost of imported petrol at approximately ₦927 per liter, importers are compelled to sell at a loss to remain competitive. This situation translates to an estimated daily loss of ₦2.5 billion, amounting to about ₦75 billion monthly for fuel importers.
The competitive pricing by Dangote Refinery is leading to a significant shift in market dynamics. Importers are expressing concerns that the continuous price reductions may render fuel importation economically unviable, potentially leading to a decrease in import activities and a realignment of the fuel supply chain in favor of locally refined products.
