Big Loss for Importers as Filling Stations Adjust Price After Dangote, NNPC Change Price

• Due to the new price drop, product importers may lose an average of N466.62 million every day and N13.998 billion per month
• This occurred as the Dangote Petroleum Refinery's updated ex-depot price is now N33.33 less than the typical landing cost of one liter of imported gasoline
• This is expected to change the dynamics of the market in favor of the indigenous producer and driving petroleum importers out of the Nigerian market

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Importers of petroleum product may lose an average of N466.62 million per day and N13.998 billion per month due to the new price reduction in the ex-gantry cost of locally refined Premium Motor Spirit announced last week by the Dangote Petroleum Refinery.

This came as new industry statistics showed that the revised ex-depot price provided by the Dangote Petroleum Refinery is now N33.33 less expensive than the average landing cost of a litre of imported gasoline.

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It is anticipated that this difference will shift market dynamics in favor of the domestic producer, possibly pushing petroleum importers out of the Nigerian market.

But compared to the average of N2.5 billion per day and N75 billion per month lost in March as a result of price changes, the new financial loss to be incurred is an 81% decrease.

The trend is associated with marketers importing less petrol and a closing price differential between imported and domestically refined fuel.

How stakeholders react

Industry participants point out that as the Dangote Refinery reshapes competition and asserts its pricing power, this event may signal a turning point in Nigeria's petroleum supply chain.

Last Wednesday, the refinery issued its third pricing change in six weeks, lowering its ex-depot price by N30 to N835 per litre. This was a 3.5% drop and a N45 drop from the previous sale price of N880 per liter.

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MRS, Ardova and others set new pump prices nationwide

Nigerians will now purchase from its partners across the country, including MRS, AP (Ardova), Heyden, Optima Energy, Hyden, and Tecno Oil, at revised pricing, it said.

Marketers of petroleum goods commented on the situation, implying that they could lose billions of naira since they might have to sell gasoline at a price significantly lower than their costs.

Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, praised the change in Dangote Petrol's gantry prices but bemoaned the fact that marketers with outdated inventory must sell at a loss.

“It is a good development for Nigerians; however, marketers with the old price stock will have to lose billions of naira. It is affecting marketers, but based on the naira-for-crude, the effect must be reflected in the pump price,” he said in an interview.

Importing marketers, who are mostly members of the Depot and Petroleum Products Marketers Association of Nigeria, are expected to lose an average of N466.62 million per day and N13.998 billion per month, according to the PUNCH research.

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As of Wednesday, April 16, the landing cost of gasoline was N868.33 a liter, according to the Major Energies Marketers Association of Nigeria. The ex-depot price of PMS at the Dangote refinery is N835; this is N33.33 more.

Speaking to State House correspondents last week, Farouk Ahmed, the Chief Executive of the NMDPRA Authority, revealed that the amount of gasoline imported decreased from 44.6 million liters per day in August 2024 to 14.7 million liters as of April 13, 2025.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority recently reported that Nigeria's daily PMS consumption was approximately 50 million liters per day.

After Dangote announced the price reduction, fuel importers told Punch that dealers could be forced to sell below their cost pricing since customers would only purchase from vendors offering lower rates for petrol.

According to Dr. Billy Gillis-Harry, president of the Petroleum Products Retail Outlets Owners Association of Nigeria, the sector is experiencing severe volatility as a result of the capricious price changes.

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Dangote, NNPC slash petrol prices again but filling stations yet to adjust their pumps

NNPC announces new fuel price below Ardova, MRS, others

Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) has slashed its petrol pump price to N910 per litre on Wednesday, April 16.

This new price represents a N15 reduction from the previous pump price of N925 per litre.

While Mobil filling stations have reduced their price to N925 per litre, down from N940, Petrocam lowered its price from N940 to N930.

Source: Legit.ng