Dangote Refinery Slashes Petrol Prices as Competition Heats Up in Downstream Market
- Dangote Refinery has slashed petrol prices at the depots as competition heightens in the downstream sector
- The refinery slashed its rate a few days after the Nigerian National Petroleum Company Limited (NNPC) dropped its prices
- Experts say petrol prices are subject to changes in the price of crude oil and is driven by market forces
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The 650,000 Dangote Refinery has slashed its ex-depot price for petrol amid strong competition in the Nigerian downstream sector.
The price slash comes a few days after the Nigerian National Petroleum Company Limited (NNPC) lowered its retail prices nationwide.
Source: UGC
NNPC triggers fresh price cuts
A prior report by Legit.ng disclosed that the state oil firm reduced PMS prices to N945 per litre on Sunday, November 2, down from N955, representing a N10 reduction.
Similarly, in Lagos, the price of petrol at NNPCL stations dropped slightly from N922 to N920 per litre.
Other changes observed include Akwa Ibom, where the average petrol price reduced from N955 to N950 per litre; Abia, which recorded a slight increase from N945 to N947 per litre; and Niger, where the price dropped significantly from N945 to N920 per litre.
This development follows reports of better fuel supply across the country from the Dangote Refinery and licensed petroleum product importers.
The latest adjustment is expected to bring slight relief for Nigerians battling with the high cost of living.
Meanwhile, checks show that Dangote Refinery slashed its ex-depot prices from N887 per litre to N872, representing N5 price cut.
According to data from PetroleumPriceNG, some depot operators sell petrol lower than the mega refinery.
Depot prices vary nationwide
- Northwest: N910
- Mainland: N907
- Dangote: N872
- Pinnacle: N972
- Rainoil Lagos: N871
- A.A. Rano: N870.5
- Eterna: N871
- Aiteo: N871
The price adjustments by Dangote and operators show the dynamic of the Nigerian downstream petroleum sector.
A previous report by Legit.ng disclosed that Nigerians became anxious when petrol prices rose to N887 per litre at the depots.
The development led to increased transport fare, higher food prices and other essential items going up in prices as traders sought to recoup profit.
Experts weigh in on deregulation
Experts have said the Nigerian downstream sector will remain fluid due to the deregulation of the sector, which allows the market to set the pricing structure for the industry.
“This is the beauty of deregulation. Market forces determine the price and each marketer is free to set their own prices,” Adeola Yusuf, energy policy analyst said.
According to him, prices are susceptible to crude oil prices in the international market.
Source: Getty Images
“Crude oil prices are highly volatile and refined products are susceptible to changes in the market,” she said.
Imported petrol undercuts Dangote's price
Legit.ng earlier reported that the landing cost of imported Premium Motor Spirit (PMS) has dropped below the price of locally refined petrol from the Dangote Refinery, even after the Federal Government’s new 15% import tariff.
According to the Major Energies Marketers Association of Nigeria (MEMAN), imported petrol landed at ₦829.77 per litre as of October 30, compared to the Dangote refinery’s ₦877 per litre ex-depot price.
This represents a further decline from ₦849.61 recorded on October 13, showing a consistent downward trend in import costs.
Source: Legit.ng
