By Abdullahi Mukhtar Algasgaini
Importers of petroleum products are expressing concerns over the continuous lowering of petrol prices by the Dangote Refinery, which they claim could force them to sell at a loss.
As consumers flock to outlets offering the lowest prices, dealers fear they may be forced out of the market.
On Wednesday, the Dangote refinery announced a N65 reduction in the ex-depot (gantry) price of petrol after lowering it from N890 to N825 per litre.
The price cut, effective from February 27, marks the second price drop of the year and the third adjustment in just two months.
Importers have voiced their concerns that the latest price cuts are making it less appealing to import petroleum products.
The cost of landing Premium Motor Spirit (PMS) reached about N927 per litre last week, higher than Dangote’s ex-depot price, leaving importers with little to no profit margin.
A dealer mentioned, “Some of us who have imported PMS are feeling the heat of Dangote’s decision to slash prices. Though it’s good to reduce petrol prices, it’s taking a toll on our business.”
Another dealer believes that Dangote’s price cuts aim to deter fuel imports, stating, “This latest reduction will discourage fuel imports. Some of us will have to source our products locally.”
Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, acknowledged the potential financial losses for importers.
He commended Dangote’s efforts, noting that the refinery’s price cuts could push importers out of business.
Ukadike also emphasized the need for improved distribution infrastructure to further reduce prices and enhance supply across Nigeria.
Despite the challenges, Ukadike reaffirmed the support of independent marketers for Dangote’s refinery, praising the development of the 650,000 single-train refinery in Nigeria and the removal of fuel subsidies.
He stated that his association will continue to purchase products from Dangote as long as prices remain competitive.