Fuel importers in Nigeria may suffer losses amounting to N13.998 billion monthly following a fresh price cut by Dangote Petroleum Refinery, which significantly undercuts the cost of imported fuel.
Last week, Dangote Refinery reduced the ex-depot price of its Premium Motor Spirit (PMS) from N865 to N835 per litre, marking its third price adjustment in six weeks. The reduction has put importers at a disadvantage, as the landing cost of imported petrol now stands at N868.33 per litre—a N33.33 difference compared to Dangote’s revised ex-depot price.
The sharp price disparity has placed enormous pressure on fuel importers, particularly members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), who are now on track to lose an estimated N466.62 million daily.
Confirming its latest price cut, Dangote stated that PMS would now retail at reduced pump prices nationwide through its partner distributors.
While consumers may welcome the relief, downstream operators are feeling the squeeze. Independent Petroleum Marketers Association of Nigeria (IPMAN) spokesperson, Chinedu Ukadike, welcomed the price drop for consumers but expressed concern that marketers holding older, higher-priced stocks would incur major losses.
“It is a good development for Nigerians; however, marketers with old price stock will have to lose billions of naira. It is affecting marketers, but based on the naira-for-crude, the effect must be reflected in the pump price,” Ukadike said.
Further complicating matters, Nigeria’s petrol import volume has dropped drastically. According to the NMDPRA, importation has fallen from 44.6 million litres per day in August 2024 to 14.7 million litres as of April 13, 2025.
With the average imported fuel landing at N868.33 per litre, a daily volume of 14 million litres would cost importers about N12.17 billion, compared to N11.69 billion if sourced from Dangote.
This translates to a daily loss of N466.62 million, potentially reaching nearly N14 billion monthly.
Industry insiders warn that these recurring losses could push importers out of business unless they pivot toward local refining strategies.
“Unfortunately, we are asking them to come so that we can re-strategise and change their business strategy so they can remain relevant when Nigeria becomes a refining hub, but they are not forthcoming,”
Meanwhile, Nigerian National Petroleum Company Limited (NNPC) also announced a reduction in its petrol price from N950 to N935 per litre, slightly above Dangote’s new benchmark.
Stakeholders in the retail segment, like Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have raised concerns over price instability.
PETROAN President, Dr. Billy Gillis-Harry, said that erratic pricing decisions—whether due to fluctuating crude oil prices or market forces—were disruptive and unsustainable for retailers and marketers alike.
“There is no calculation that I know of in the books that would bring petrol prices back to N500, N600, or N700 per litre at the pump,” he stated.
