Fuel importers jittery as Dangote Refinery slashes petrol price by N65

Importers of petroleum products have lamented the repeated reduction of petrol prices by the Dangote Petroleum Refinery, saying the reduction might be compelled to sell below their cost prices as consumers would only buy from where petrol is cheaper.

On Wednesday, the Dangote refinery announced a reduction in the ex-depot (gantry) price of petrol by N65, from N890 to N825 per litre, effective from today, February 27. This is the second price reduction in the new year, and the third one in a space of two months.

The price will drop by N65 per litre, bringing it down from N890 to N825 per litre, effective Thursday, February 27, 2025.

The refinery disclosed this development in a statement issued on Wednesday, emphasizing that the adjustment is part of its efforts to cushion the impact of rising living costs on consumers.

“This recent price reduction will ensure that Nigerians pay between N860 and N865 per litre for petrol at the pump in Lagos,” the statement read.

Industry experts have weighed in on the development, with energy analyst Dr. Adewale Sanyaolu describing it as a welcome relief for consumers struggling with the high cost of fuel.

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“This move will bring some temporary respite to Nigerians, especially as we approach the Ramadan season, when transportation and household energy costs tend to rise,” he said.

Additionally, economic expert and CEO of Energy Watch Nigeria, Mrs. Zainab Mohammed, highlighted the broader implications of the price cut.

“Beyond easing the financial burden on individuals, this reduction aligns with the government’s efforts to stabilize the economy. A lower pump price could reduce inflationary pressures, particularly in the transport and logistics sectors,” she noted.

The refinery further stated that the price adjustment is in line with its commitment to supporting President Bola Ahmed Tinubu’s economic recovery initiatives.

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While consumers welcome the reduction, stakeholders in the downstream sector caution that fuel prices remain volatile due to factors such as global crude oil prices, exchange rate fluctuations, and supply chain dynamics.

Nonetheless, the Dangote Refinery’s move is expected to provide short-term relief to motorists, transport operators, and businesses that rely on petrol for their daily operations.

Nigerians will now be keenly watching whether further reductions or adjustments will follow in the coming months.