Dangote Petroleum Refinery has lowered its petrol loading cost from N825 per litre to N815 per litre in a fresh bid to strengthen its market position amidst intense competition in Nigeria’s downstream oil sector.
The price adjustment, which took effect on Thursday, was welcomed by oil marketers, who responded by shifting their sourcing from private depot owners to Dangote’s refinery. The N10 reduction is expected to trigger a competitive response from private depots, potentially leading to a further reduction in retail petrol prices.
This development follows a report on Tuesday revealing that the landing cost of imported petrol had dropped to N774.72 per litre, down by N50.28 from the previous N825 per litre offered at Dangote’s loading gantry. Industry players anticipate that the ongoing price drop could push pump prices down to around N800 per litre.
Commenting on the situation, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Ukadike Chinedu, said the reduction was influenced by fluctuations in crude oil prices.
“Crude oil is a major factor in fuel production. A reduction in its price will naturally lead to a drop in petrol prices, which could bring the pump price down to N800 per litre,” Chinedu explained.
To retain market dominance, the 650,000 barrels-per-day capacity Dangote refinery adjusted its ex-depot price to N815 per litre. With the additional N10 levy from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the total loading cost now stands at N825 per litre.
In response, private depot owners in Lagos have also adjusted their prices. While AA RANO and MENJ depots maintained their prices at N830 per litre, Bovas reduced its rate to N826, and AITEO lowered its price from N832 to N827. Integrated Depot and WOSBAB now sell at N826 and N831 per litre, respectively, while RAINOL is offering its products at N831 per litre.
An anonymous marketer confirmed the reduction, stating, “I have seen the pro forma invoice showing N815 ex-depot, N825 including the NMDPRA levy. Marketers are currently selling between N826 and N830 per litre.”
Efforts to obtain a copy of the pro forma invoice were unsuccessful, as Dangote reportedly recalled all invoices due to a clerical error. An official from the refinery, who requested anonymity, declined to confirm the price adjustment but advised that reports from oil marketers should be relied upon.
Meanwhile, the landing cost of petrol has climbed to N803.35 per litre from N774.72 per litre, though it remains below Dangote’s ex-depot price. The Major Energies Marketers Association of Nigeria (MEMAN) stated that this could influence future price adjustments in the downstream sector.
Chinedu described the situation as a positive outcome of market deregulation. “Dangote has millions of litres in storage and would naturally adjust its price to maintain market share,” he said.
The ongoing price adjustments highlight the competitive dynamics in Nigeria’s deregulated oil market, with marketers and consumers closely monitoring future developments.
