The recent decision by Dangote Refinery to further reduce petrol prices has sent ripples through Nigeria’s fuel import market, leaving importers concerned about potential losses and increased competition.
Reports indicate that the refinery, owned by billionaire industrialist Aliko Dangote, has once again lowered the ex-depot price of petrol, making its locally refined fuel more competitive against imported alternatives.
By the new rate announced on Wednesday, the ex-depot (gantry) price of Premium Motor Spirit (PMS), commonly referred to as petrol drops from N890 to N825 per litre, effective today, Thursday, February 27, 2025.
This move comes at a time when the country is striving to reduce its dependence on imported petroleum products and strengthen domestic refining capacity.
Industry sources reveal that the latest price cut by Dangote Refinery could significantly impact fuel importers, many of whom are already grappling with fluctuating forex rates and higher landing costs.
With the refinery’s growing capacity to meet local demand, importers fear a shrinking market for foreign-sourced petrol.
A petroleum marketer, who preferred anonymity, described the situation as a game-changer, noting that Dangote’s ability to produce and sell at a lower cost is gradually reshaping the industry.
“If the refinery continues at this pace, the market dynamics will change drastically. Importers will find it harder to compete,” he said.
On the consumer end, the reduction in petrol prices could bring relief to Nigerians, who have been struggling with high fuel costs. Lower pump prices are expected to ease inflationary pressures on transportation and goods, a move welcomed by many.
However, some industry analysts argue that while Dangote Refinery’s aggressive pricing strategy benefits consumers, it may force fuel importers out of business, leading to job losses and reduced industry competition.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has yet to comment on the latest price adjustment, but stakeholders are keenly watching how the situation unfolds.
As the competition between local refining and fuel importation intensifies, the coming months will reveal the long-term impact of Dangote Refinery’s pricing strategy on Nigeria’s petroleum industry.
