Nigerians celebrate lower fuel prices, but importers worry about losses
The Dangote Petroleum Refinery has once again reduced the ex-depot price of petrol, dropping it from ₦890 to ₦825 per litre.
While this is great news for consumers, fuel importers are feeling the pressure as they struggle to compete.
Why Dangote Refinery Reduced Petrol Prices
In a statement, Dangote Refinery explained that the price cut is meant to ease financial burdens on Nigerians, especially with Ramadan approaching.
The move also aligns with President Bola Tinubu’s economic recovery plan, which aims to make essential commodities more affordable.
This is the third price cut in two months:
- February 2025: Reduced by ₦60 earlier in the month
- December 2024: Dropped from ₦970 to ₦899.50 per litre
The company claims these reductions have helped prevent fuel shortages and price hikes that usually occur during festive seasons.
New Petrol Prices Across Nigeria
At Dangote’s partner stations, petrol will now be sold at:
- Lagos: ₦860 (MRS), ₦865 (Heyden & Ardova)
- South-West: ₦870 (MRS), ₦875 (Heyden & Ardova)
- North: ₦880 (MRS), ₦885 (Heyden & Ardova)
- South-South & South-East: ₦890 (MRS), ₦895 (Heyden & Ardova)
Fuel Importers Worried About Business Survival
While consumers welcome the price cut, importers are struggling. Reports indicate that imported petrol costs around ₦927 per litre, meaning they are selling at a loss to stay competitive.
One importer, who spoke anonymously, expressed concern:
“Some of us who still import petrol are feeling the impact. It’s good that prices are coming down, but it’s hurting our business.”
Another retailer believes Dangote is making fuel importation unattractive:
“Dangote understands competition, and with these price cuts, many of us may have to stop importing fuel.”
Industry Leaders React to Price Drop
While importers worry, some industry stakeholders support the price reduction.
- Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), noted that Dangote is benefiting from deregulation, which allows private refineries to control pricing.
- Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), welcomed the price cut, saying: “This is great news for Nigerians. We fully support it.”
Dangote Expands Fuel Exportation
Apart from meeting local demand, Dangote Refinery has started exporting fuel.
Recent reports reveal that it shipped low-sulphur fuel oil (LSFO) to Fujairah, UAE, marking another step in its global expansion.
The refinery also exported aviation fuel to Saudi Aramco last year, showing its growing influence in the international market.
Dangote’s Vision: A Self-Sufficient Nigeria
Africa’s richest man, Aliko Dangote, remains committed to making Nigeria self-reliant in fuel production.
“We have over half a billion litres of petrol in storage, worth more than ₦600 billion. We can meet Nigeria’s fuel needs and even export to other countries,” he stated.
With this rapid expansion, Nigeria could soon end fuel importation entirely, benefiting both the economy and consumers.
What This Means for Nigerians
With lower petrol prices, Nigerians could experience:
✅ Cheaper transportation
✅ Lower inflation on goods and services
✅ Less reliance on imported fuel
However, fuel importers might struggle to keep their businesses running if Dangote continues to dominate the market.
Will Dangote Refinery eventually eliminate fuel importation in Nigeria? Share your thoughts in the comments.
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