Filling Stations Yet to Drop Petrol Costs Despite Dangote Refinery's Recent N25 Price Cut
- Dangote Refinery reduced its ex-depot petrol price from N1,275 to N1,250, and cut diesel prices from N1,800 to N1,700 per litre
- Despite the reduction, most filling stations across Nigeria have maintained their existing pump prices, with only a few lowering prices
- Analysts say high-cost inventories, transportation expenses, and other distribution costs are delaying the transfer of lower depot prices to consumers
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The recent reduction in petrol prices by Dangote Petroleum Refinery has brought little relief to consumers, as most filling stations across Nigeria have largely maintained their existing pump prices despite the adjustment.
Over the last weekend, the refinery lowered its ex-depot petrol price by N25 per litre, reducing it from N1,275 to N1,250 per litre.
However, the majority of fuel marketers have not passed on the reduction to motorists.
Source: UGC
A market check conducted by Daily Champion showed that only a few retail outlets adjusted their prices downward, with cuts ranging between N5 and N10 per litre.
As a result, consumers have yet to feel the full impact of the refinery’s latest price review.
The refinery also announced a reduction in the ex-depot price of diesel, cutting the product’s price from N1,800 to N1,700 per litre.
The company said the move aligns with its objective of making petroleum products more affordable while supporting economic growth and business activities nationwide.
Distribution costs, inventory concerns slow price transmission
Industry stakeholders say the muted response at the retail level underscores ongoing inefficiencies within the downstream petroleum sector, where reductions in depot prices do not always lead to immediate decreases at filling stations.
According to market analysts, several factors contribute to the delay. These include existing fuel stocks purchased at higher prices, transportation and logistics costs, distribution expenses, and varying pricing strategies adopted by marketers.
The development has also reignited concerns about the lack of effective monitoring systems capable of ensuring that cost reductions at the supply stage are transferred to consumers.
Source: Getty Images
Experts note that although Nigeria’s downstream petroleum market operates under a deregulated framework, greater transparency and stronger competition remain essential for efficient price transmission across the value chain.
They argue that without these conditions, consumers may continue to experience delayed benefits whenever wholesale fuel prices decline.
Increased fuel imports and greater product availability are driving the price war, forcing suppliers to closely monitor and adjust their pricing strategies.
Dangote Refinery to process 130 crude types
Meanwhile, Legit.ng earlier reported that Dangote Refinery plans to increase the number of crude oil grades it can process from about 40 to 130 as part of an expansion project.
The expansion aims to double the refinery’s capacity to 1.4 million barrels per day and make it more competitive in global energy markets.
The refinery expects lower operating costs, greater flexibility in sourcing crude from different countries, and stronger long-term export partnerships.
Source: Legit.ng
