“Marketers with old stock will lose billions” – IPMAN on Dangote’s petrol price slash

The recent reduction in petrol prices by Dangote Refinery has sent shockwaves through Nigeria’s downstream oil sector, with independent marketers warning of massive financial losses. On Wednesday, Dangote Refinery announced a new gantry price for premium motor spirit (PMS) at N835 per litre, down from N865. This marks the second price slash in just over a week, with a total reduction of N45 per litre following the renewal of the federal government’s naira-for-crude deal on April 9, 2025.

Reacting to the development, the spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said the cut benefits Nigerian consumers but puts marketers who bought fuel at higher prices in a difficult position. “It is a good development for Nigerians; however, marketers with the old price stock will have to lose billions of naira,” he said in an interview.

The price adjustment has begun reflecting at the retail level. According to Dangote Group spokesperson Anthony Chiejiena, petrol prices in Lagos have dropped to N890 per litre, down from N920. In other regions, the South-West, North-West, and North-Central zones will now see fuel sold at N900 to N910, while the South-East, South-South, and North-East zones will experience a reduction to N920, from the previous N950.

“We are committed to providing high-quality petrol at affordable rates, benefiting consumers across the nation,” said Chiejiena. “We anticipate that this latest reduction in PMS prices will generate a positive ripple effect throughout various sectors of the economy, providing much-needed relief to consumers and contributing to broader economic growth, particularly during the Easter season.”

Despite praise from some quarters, the price cuts have stirred unease within the fuel marketing industry. The president of the Petroleum Retailers Outlets Owners Association of Nigeria, Billy Gillis-Harry, expressed concern over what he described as arbitrary pricing by Dangote Refinery, urging the government and industry players to adopt a six-month fuel price stability plan.

Meanwhile, Dangote’s strategic advantage in the market has become more pronounced. The Major Energies Marketers Association of Nigeria reported that the landing cost of imported petrol currently stands at N845.70 per litre, based on a Brent crude benchmark of $64.88 per barrel and an exchange rate of N1,604.48 per dollar. With Dangote’s petrol priced below this figure, it now holds a significant edge over importers.

The Nigerian National Petroleum Company Limited (NNPC), which still sells petrol at N950 per litre in its retail outlets, is yet to respond to the price changes. However, industry observers are closely watching for a possible adjustment. On Monday, the head of the Nigerian Midstream and Downstream Petroleum Regulatory Authority revealed that fuel imports had dropped by 30 million litres, largely due to increased domestic supply from the Dangote Refinery.