The recent price reduction at the Dangote oil refinery is estimated to result in a loss of up to N32.5 billion from a stock of 500 million liters of premium motor spirit. Prior to the price slash, the refinery had over 500 million liters of petrol in its tanks, selling at N890 per liter.
In a bid to benefit Nigerians, the refinery reduced the ex-depot price of petrol by N65, bringing it down to N825 per liter. This marks the second price reduction in February 2025, following earlier decreases. Despite the potential loss of revenue due to the price reduction, experts believe that factors like the drop in crude prices and the stronger naira against the dollar could help the refinery recover its losses.
While consumers welcomed the price cut, fuel importers and marketers expressed concerns over their diminishing profit margins. The consistent price reductions by the Dangote refinery have made importation less lucrative, leading to significant financial losses for fuel importers. Some filling stations have already adjusted their pump prices below N900 per liter, with the Nigerian National Petroleum Company Limited retail stations in Lagos selling at N860 per liter.
Despite the challenges faced by importers and marketers, consumers are hopeful for further price reductions, with projections suggesting petrol prices may decrease to N800 per liter as the landing cost hovers around N783.66 per liter. There have also been calls for Dangote to expand the availability of its petroleum products through more filling stations across Nigeria.