The Dangote Refinery, a major player in Nigeria’s oil sector, is facing issues due to the surge of imported petrol offered at competitive prices.
Independent oil marketers are drawn to this scenario because they believe imported fuel to be more affordable than the refinery’s products.
The Dangote Refinery has lowered the price of its ex-depot petrol from ₦990 to ₦970 per litre in reaction to market conditions.
Even with this change, some independent merchants claim they can import gasoline for about ₦900 per litre, making it a more alluring choice.
The refinery has raised concerns about the lax implementation of Nigeria’s fuel quality regulations, which has allowed inferior imported fuels to reach the market.
This regulatory lapse has weakened the refinery’s position and impacted its market share.
The competition for the Dangote Refinery is further heightened by the Nigerian National Petroleum Corporation (NNPC) continued importation of petroleum to satisfy domestic demand.
