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Dangote Petroleum Refinery’s latest petrol price cut to N835 per litre is set to cause a loss of N13.998bn monthly for fuel importers, as their landing cost now exceeds Dangote’s ex-depot price by N33.33 per litre.
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The move signals a shift in Nigeria’s oil supply chain, with falling imports, increased local refining, and declining demand for imported petrol due to Dangote’s growing market influence.
Importers of Premium Motor Spirit (PMS) in Nigeria are projected to lose up to N13.998bn monthly following the recent price cut announced by Dangote Petroleum Refinery.
With Dangote reducing its ex-depot price from N865 to N835 per litre, importers are now forced to sell at a loss, as their landing cost stands at N868.33 per litre—N33.33 higher than the local refinery price.
Petroleum marketers have raised concerns over the market imbalance created by Dangote’s price advantage. “Marketers with the old price stock will have to lose billions of naira,” said Chinedu Ukadike, spokesperson of the Independent Petroleum Marketers Association of Nigeria.
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Fuel dealers say the sharp price difference makes it difficult to compete, forcing them to sell below cost to remain relevant in the market.
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Stakeholders believe the development reflects a major industry shift, as fuel importation dropped from 44.6 million litres per day in August 2024 to 14.7 million litres in April 2025, largely due to the rise in local refining.
“Refining in Nigeria has come to stay,” said CORAN’s Eche Idoko. Meanwhile, the NNPC has also reduced its pump price to N935 per litre, as consumers gravitate toward cheaper options provided by Dangote’s distribution partners across the country.
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