Dangote Petrol Now Cheaper Than Imported Fuel as Petroleum Product Importers Adjust Prices
- Petroleum product marketers have lamented the impact of the petrol price slash by Dangote Refinery
- They fear that they may sell their products lower the import costs as Dangote petrol now sells cheaper than imported fuel
- The mega refinery slashed petrol prices to N65 per litre again, from N890 to N825 for the ex-depot price
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Petroleum products importers have lamented the continued price slash of petrol by the Dangote Refinery.
Some of the importers revealed that dealers said they might be forced to slash their prices after importing at a high cost as consumers would now patronise filling stations selling cheaper fuel.
Source: Getty Images
Dangote new Petrol price: Marketers lament
Legit.ng had reported that the giant Dangote Refinery reduced the ex-depot petrol price by N65, down from N890 to N825 per litre.
This is the second time the refinery has slashed petrol in two months.
Despite the drop in petrol imports, some marketers still import the commodity. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed that about 50% of local consumption comes from imports.
However, Dangote Refinery management disclosed in a statement that the price adjustment was to relieve Nigerians ahead of the Ramadan season and support President Bola Tinubu’s economic recovery plans by easing the financial stress on Nigerians.
Dangote Refinery said:
“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.”
Dangote petrol sells cheaper at designated places
Findings show that Nigerians will purchase the low-priced Dangote petrol from its partners nationwide.
The refinery listed retailers selling its petrol at varying prices across the country.’
The $20 billion refinery assured Nigerians of a consistent supply of petroleum products, with enough reserves to meet domestic supply and for export to boost Nigeria’s foreign exchange earnings.
Some marketers, however, said Dangote Refinery is gradually making fuel imports less attractive as its petrol now sells far less than imported petroleum products.
Dangote petrol sells cheaper than imported fuel
A previous report by Legit.ng revealed that PMS landing cost hit N927 per litre last week, higher than the ex-depot price of the Lekki-based refinery.
Punch reports that marketers are lamenting the low patronage of their product as a report revealed that Dangote now controls 60% of the petrol market in Nigeria.
According to the marketers, importers are now pressed by Dangote’s slash of petrol prices.
The national publicity secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN) Chinedu Ukadike, revealed that importers may run at a loss due to the new price slash.
He stated that the price cut would affect importers, saying that Dangote was leveraging the deregulation of the downstream petroleum industry.
He affirmed IPMAN’s continued patronage of the Dangote Refinery.
Ukadike stated that the availability of petrol is no longer a challenge, asking the Nigerian government to repair the depots and pipelines.
Marketers commend Dangote Refinery
According to Ukadike, Dangote’s price slash will reduce marketers' investment and increase their purchasing power.
Source: Getty Images
Also, the national president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) Billy Gillis-Harry commended the refinery for the new development.
He said the price reduction would leave Nigerians better, saying that environmental and economic factors will drive pricing.
“The price will keep fluctuating, it will not be static. N825 per litre is welcome, and we salute Dangote for that,” he said.
Petrol consumption drops
Meanwhile, Legit.ng reported that NMDPRA has revealed that Nigeria’s three functional refineries supply less than 50% of the country’s petrol consumption despite improved refining capacity.
The NMDPRA said the shortfall in petrol supply was being met by importing petroleum products.
The authority also said the country’s petrol consumption has fallen to 50 million litres daily.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
