Dangote Refinery’s Petrol Price Slash Shakes Market, Marketers Count Billions in Losses

• Dangote Refinery has reduced its ex-depot petrol price to ₦835 per litre, unsettling petroleum marketers who now face heavy losses on old stocks.

• The price cut, attributed to the naira-for-crude deal and declining global crude prices, puts Dangote at a competitive advantage in the downstream sector.

The recent ex-depot petrol price cut by Dangote Refinery to ₦835 per litre has triggered disruptions among petroleum marketers, who say they are facing billions of naira in losses due to unsold old stock bought at higher prices.

Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), told newsmen that the reduction is beneficial for consumers but unfortunate for marketers.

“It is a good development for Nigerians; however, marketers with the old price stock will have to lose billions of naira,” he lamented.

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Dangote Group’s spokesperson, Anthony Chiejiena, explained that the new prices ranging between ₦890 and ₦920 per litre across different regions are part of a broader strategy to offer “high-quality petrol at affordable rates.”

He emphasised the positive impact the reduction is expected to have on the economy, saying, “We anticipate that this latest reduction in PMS prices will generate a positive ripple effect and contribute to broader economic growth.”

This is the second price drop in eight days, totaling a ₦45 reduction, following the federal government’s continued support for the naira-for-crude oil deal with local refiners.

READ ALSO: Dangote Refinery Drops Petrol Price Again, Sells at N835/Litre

With Dangote’s competitive pricing undercutting the ₦950 per litre currently charged at NNPC outlets, market dynamics in the downstream oil sector are rapidly shifting.

Meanwhile, Billy Gillis-Harry of the Petroleum Retailers Outlets Owners Association of Nigeria (PETROAN) has criticized the “arbitrary” price slashes and is advocating a six-month price stability strategy.