Fuel Marketers Hold Petrol at ₦1,260 Per Litre Despite Dangote Refinery’s ₦50 Price Slash
Despite a fresh reduction in ex-depot prices announced by the Dangote Petroleum Refinery and Petrochemicals, petroleum marketers across Nigeria have kept retail pump prices unchanged, sparking frustration among motorists and transport operators.
Dangote Refinery recently announced a ₦50-per-litre reduction in its ex-depot price for Premium Motor Spirit (PMS), bringing the gantry price down from ₦1,215 to ₦1,165 per litre. Additionally, the price of diesel (Automotive Gas Oil) was slashed by ₦80 per litre, dropping from ₦1,650 to ₦1,570 per litre.
However, market checks across major and independent filling stations reveal that retailers continue to sell petrol between ₦1,240 and ₦1,260 per litre, failing to pass on the savings to end consumers.
Motorists Express Frustration Over Price Lag
The failure of marketers to adjust retail prices has drawn criticism from commercial drivers and commuters, who accuse fuel station operators of double standards—moving swiftly to hike pump prices whenever ex-depot costs rise, but delaying reductions when wholesale prices drop.
Even major off-takers and strategic distribution partners associated with the refinery have maintained their existing retail prices.
Reacting to the development, local transport operators noted that while retailers require margins to cover transportation and overhead costs, a price reduction at the pump was expected following the refinery’s price slash. Motorists had anticipated retail prices dropping closer to ₦1,200 per litre.
Calls for Regulatory Intervention
In light of the price gap, stakeholders in the transport and logistics sectors are calling on regulatory bodies, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC), to monitor market behavior and ensure fair pricing for consumers.
Market experts typically attribute delays in retail price adjustments to:
* Old Inventory: Marketers holding stock purchased at higher pre-reduction rates before acquiring new inventory.
* Logistics & Haulage Costs: Transportation fees, depot loading expenses, and regional distribution overheads.
* Profit Margins: Retail markup strategies implemented by independent station operators.
Dangote Refinery’s Stance on Energy Affordability
Dangote Petroleum Refinery stated that the downward review forms part of its ongoing strategy to make refined petroleum products more accessible and affordable across Nigeria. The company emphasized that improved operational efficiency and local refining capacity will allow it to continue passing cost benefits to domestic consumers whenever market conditions permit.
As independent and major stations exhaust older inventory, market watchers expect competitive dynamics to eventually force retail pump prices downward across key states.
