Ola Akinwunmi
Fuel importers in Nigeria are facing a massive financial blow following Dangote’s recent price cut, which has left them with a whopping N75 billion monthly loss. This drastic turn of events has sent shockwaves through the industry, as importers struggle to stay afloat amidst the new price regime.
The price cut, announced by the Dangote Petroleum Refinery, reduced the ex-depot price of petrol by N65, from N890 to N825 per litre. While this move is expected to bring relief to consumers, it has dealt a severe blow to fuel importers, who are now forced to sell their products at a loss.
According to industry experts, the average landing cost of petrol is around N927 per litre, which is N102 higher than the new ex-depot price. This means that importers will have to absorb a significant loss, estimated at N2.5 billion daily, or N75 billion monthly.
The National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, confirmed that importers may incur losses as a result of the new price reduction. He noted that the price cut would affect importers, stressing that Dangote is maximizing the advantages of deregulation.
As the fuel importers grapple with the financial implications of Dangote’s price cut, industry stakeholders are calling for a level playing field. They argue that the government should ensure that all players in the industry operate under the same conditions, to prevent unfair competition.
The development has also sparked concerns about the potential impact on the Nigerian economy, as fuel importers struggle to stay in business. With the country’s economy already facing significant challenges, the N75 billion monthly loss incurred by fuel importers could have far-reaching consequences.
The Dangote refinery announced a reduction in the ex-depot (gantry) price of petrol by N65, from N890 to N825 per litre, effective from Wednesday, February 27. This was the second price reduction in the new year, and the third one within the space of two months.
It disclosed that Nigerians will now buy at new prices from the refinery’s 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.