Dangote Refinery Slashes Petrol Price Again to N825/Liter, Importers Lament Market Disruption

The Dangote oil refinery has once again reduced the ex-deputy price of petrol in N65 per liter, make it fall From N890 to N825, as of February 27, 2025.

While the Nigerians welcomed this decision as a relief from high fuel costs, importers of petroleum products have raised concerns that the repeated price reductions in dangote make imports not profitable, pushing them effectively out of the market.

This marks the second reduction in petrol prices in February 2025, following a previous decrease in N60 earlier in the month. It also followed a similar decision in December 2024, when Dangote reduced the prices of gasoline by 70.50 N.50 during the season of Yuletide, reducing the cost of N970 to N899.50 per liter.

The refinery said that this last reduction was designed to relieve the Nigerians before the Ramadan seasonwhile aligning With the policy of economic recovery of President Bola Ahmed Tinubu by softening the financial burden of citizens.

With this last price adjustment, Lagos buyers can buy petrol in the MRS points of sale for N860 per liter, while prices vary from another region.

• Southwest: N870 per liter
• North: N880 per liter
• South-South and South-East: N890 per liter

Meanwhile, in AP (Ardova Petroleum) and Heyden Stations, the prices are slightly higher:

• Lagos: N865 per liter
• Southwest: N875 per liter
• North: N885 per liter
• South-south and south-east: N895 per liter

Dangote using price reduction to undermine fuel importers

This last price adjustment is largely considered an indication that Dangote has taken advantage of price reduction as a strategic tool to dominate the Nigerian fuel market.

The billionaire businessman is currently locked in a legal battle with Nigerian National Petroleum Company (NNPC) and oil marketing specialists, which questions their importation of fuel despite the refinery with 500 million liters of gasoline in stock, which, according to him, is sufficient to meet the demand of Nigeria.

However, even before the court strengthens its decision, Dangote seems to use aggressive prices to achieve its objective, which makes the import of fuel unprofitable and forcing marketing specialists to abandon imports in favor of locally purchase.

An initiate of the industry noted that the coherent price bars of Dangote force Fuel importers for sale at a loss or leave the market entirely.

“Some of us who imported a PMS feel the Dangote’s heat decision to reduce prices. Although it is a good thing to reduce the prices of gasoline, it weighs on our business. This is the simple truth, ”said a dealer who spoke anonymously, deplored in a conversation with the punch.

Another retailer explained that importation becomes less attractive, because Dangote’s continuous price reductions are discouraging The fuel matters completely.

“Dangote understands competition in the company, and this last reduction will more discourage fuel imports. There will be losses, because we may also have to lower our prices. At the end of the day, some of us will land our products locally. I’m just going to advise Dangote to create a playground for everyone, “said the retailer.

Importers in crisis while landing costs hover over dangote prices

The difficulties of petrol importers are aggravated by the cost of landing for petrol products. THE cost reached n927 per liter little littlek—SIGSTABLY HIGHT HIGH THAT THE NEW Dangote Dangot Prize from N825 per liter.

This means that importers sell at a loss, as they cannot afford to compete with the lower dangote prices. Some have already started to reconsider their role on the market, because the import of fuel at a higher cost while competing with a local refinery selling at cheaper rates is financially unbearable.

Confirming these concerns, the national secretary of advertising of the Independent Petroleum Marketers Association of Nigeria (IPMAN)Chinedu UkadikeDangote’s pricing strategy threatened fuel importers told The Punch.

“Dangote can” kill “fuel importers by this continuous drop in prices. All these importers who put it to the dangote that they wanted to import cheaper fuel – while approaching the seaside – Dangote will reduce the price, and they will meet in trouble, “said Ukadike.

He explained that Dangote takes full advantage of the deregulation market of Nigeria, which makes it difficult for independent fuel importers to remain competitive.

Cheaper fuel for Nigerians at risk of monopoly

While consumers celebrate price reductions, analysts warn that the Dangote pricing strategy could possibly eliminate competition, leading to a long -term monopoly in the sector.

Industry experts have also noted that if importers are completely eliminated from the market, Dangote will have total control over fuel prices in Nigeria. This could potentially raise prices in the future once the competition has been eliminated.