Importers of Premium Motor Spirits (PMS), commonly known as petrol, are reportedly unsettled by the Dangote Refinery’s recent decision to reduce its petrol price.
On Wednesday, the Dangote Refinery announced a price cut, reducing its ex-depot (gantry) price of petrol from N890 to N825 per liter, effective from February 27, 2025.
This move has caused a ripple effect across the fuel market, with importers now compelled to adjust their prices accordingly.
The Dangote Refinery, however, defended the decision, stating that it has consistently lowered the prices of petrol and other refined petroleum products to benefit Nigerians.
The refinery added that this price reduction marks the second PMS price cut in February, following a N60 reduction earlier in the month.
Explaining the rationale behind the move, Dangote Refinery emphasized that the price adjustment was strategically aimed at helping Nigerians prepare for the upcoming Ramadan season while supporting President Bola Tinubu’s economic recovery plan by alleviating the financial burden on citizens.
However, as reported by The Punch, fuel importers have raised concerns about the impact of the price reduction.
They worry that the move would force them to lower their own prices, potentially selling petrol at a loss. One dealer, who spoke on condition of anonymity, shared, “Some of us who have imported PMS are feeling the heat of Dangote’s decision. Although it’s good to reduce petrol prices, it’s taking a toll on our business. That’s the simple truth.”
Another dealer expressed fears that many importers may be forced to stop bringing in petroleum products from other countries due to the refinery’s price cuts.
“Dangote understands the competition in the business, and this latest reduction will further discourage fuel imports. There will be losses, as we may have to drop our prices too.
In the end, some of us will source our products locally. I would just advise Dangote to create a level playing field for everyone,” the retailer stated.
An earlier report by S&P Global revealed that the Dangote Refinery supplies 60% of Nigeria’s domestic petrol, though a significant portion of the product is still imported.
Importers pointed out that the landing cost of imported PMS was around N927 per liter, higher than Dangote’s ex-depot price.
Consequently, many importers have been selling the imported product with little to no profit margin, adding to their concerns.
