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Petroleum product importers in Nigeria are voicing frustration over the relentless price cuts on petrol rolled out by the Dangote Petroleum Refinery, a move they argue is shaking up the market dynamics to their detriment. Several importers cautioned that retailers could be forced to offload their stocks at a loss, as savvy consumers naturally gravitate toward the most affordable fuel options available, leaving higher-priced inventories in a bind.
On Wednesday, February 26, 2025, Dangote Refinery rolled out a significant update, trimming its ex-depot petrol price by N65—from N890 to N825 per litre—effective Thursday, February 27. This move, the second price cut of 2025 and the third in just two months, underscores a steady recalibration of fuel costs that’s keeping the industry on its toes.
Imports of petrol have tapered off, yet some traders still bring in refined products—a point driven home last week by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which revealed that about half of Nigeria’s fuel supply continues to flow from foreign shores, despite local refining gains.
In a statement, Dangote’s management positioned the price drop as a practical boost for Nigerians gearing up for Ramadan, while also tying it to President Bola Tinubu’s economic recovery efforts—an intentional step to lighten the financial strain on everyday citizens and align with national priorities.
“It is important to note that Dangote Petroleum Refinery has consistently lowered the prices of petrol and other refined petroleum products to the benefit of Nigerians. This marks the second price reduction of PMS in February 2025, following a previous decrease of N60 earlier in the month.
“Additionally, in December 2024, during the yuletide period, the refinery reduced the price of PMS by N70.50, from N970 to N899.50 per litre, as part of its commitment to easing the cost of living and providing relief to Nigerians during the holiday season.
Read also: Dangote Initiated Reduction Of Petrol Price To ₦860/litre
“This reduction has positively impacted the overall cost of living, benefiting various sectors of the economy, and has also ensured that Nigerians did not experience the perennial fuel scarcity and price hikes typically associated with the yuletide season,” the company stated.
It disclosed that Nigerians will now buy at new prices from its partners nationwide, including MRS, Heyden, and Ardova.
“Nigerians will be able to purchase the high-quality Dangote petrol at the following prices in all our partners’ retail outlets. For MRS Holdings stations, it will sell for N860 per litre in Lagos; N870 per litre in the South-West, N880 per litre in the North, and N890 per litre in the South-South and South-East respectively.
“The same product will also be available at the following prices in Ardova Petroleum and Heyden stations: N865 per litre in Lagos, N875 per litre in the South-West, N885 per litre in the North, and N895 per litre in the South-South and South-East,” the company said.
The refinery assures the public of a consistent supply of petroleum products, with sufficient reserves to meet domestic demand, and a surplus for export to enhance the country’s foreign exchange earnings.
“The company calls on marketers to support this initiative, ensuring that Nigerians remain the primary beneficiaries of this effort. This collective action will contribute to the broader economic recovery plan led by President Bola Tinubu, who is committed to making Nigeria self-sufficient in refined petroleum products and establishing the country as a leading oil export hub,” the statement concluded.
However, as Nigerians rejoice over the price slash, fuel importers seem to be counting the effect this will have on their business.
According to some of them, the Dangote refinery is gradually making importation less attractive with how it has dropped the prices of petrol and diesel lately.
It was gathered that the landing cost of PMS was around N927 a litre in the past week, an amount higher than the ex-depot price of the Dangote.
The importers said they have been managing to sell the imported products with little or no margin due to the need to compete well in the market.
“Some of us who have imported PMS are feeling the heat of Dangote’s decision to slash prices. Though it is a good thing to reduce petrol price, it is taking a toll on our business. That’s the simple truth,” a dealer who spoke to our correspondent in confidence due to the nature of the matter, stated.
Another retailer noted that the Dangote refinery is reducing prices to discourage fuel importation, saying many will have to stop bringing in petroleum products from other countries.
