The Dangote Petroleum Refinery has once again reduced the ex-depot price of petrol by N65 per liter, bringing it down from N890 to N825, effective February 27, 2025.
While Nigerians have welcomed the move as a relief from high fuel costs, petroleum product importers have raised concerns that Dangote’s repeated price cuts are making importation unprofitable, effectively pushing them out of the market.
This marks the second price reduction of petrol in February 2025, following a previous N60 decrease earlier in the month. It also follows a similar move in December 2024, when Dangote slashed petrol prices by N70.50 during the yuletide season, cutting the cost from N970 to N899.50 per liter.
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The refinery stated that this latest reduction was designed to provide relief to Nigerians ahead of the Ramadan season, while also aligning with President Bola Ahmed Tinubu’s economic recovery policy by easing the financial burden on citizens.
With this latest price adjustment, buyers in Lagos can purchase petrol at MRS outlets for N860 per liter, while prices vary across other regions.
- South-West: N870 per liter
- North: N880 per liter
- South-South & South-East: N890 per liter
Meanwhile, in AP (Ardova Petroleum) and Heyden stations, prices are slightly higher:
- Lagos: N865 per liter
- South-West: N875 per liter
- North: N885 per liter
- South-South & South-East: N895 per liter
Dangote Using Price Reduction to Undercut Fuel Importers
This latest price adjustment is widely seen as an indication that Dangote is leveraging price reduction as a strategic tool to dominate the Nigerian fuel market.
The billionaire businessman is currently locked in a legal battle with the Nigerian National Petroleum Company (NNPC) and petroleum marketers, challenging their continued importation of fuel despite his refinery having 500 million liters of petrol in stock, which he said is enough to meet Nigeria’s demand.
However, even before the court delivers its ruling, Dangote appears to be using aggressive pricing to achieve his objective—making fuel importation unprofitable and forcing marketers to abandon imports in favor of buying locally.
An industry insider noted that Dangote’s consistent price slashes are forcing fuel importers to sell at a loss or exit the market entirely.
“Some of us who have imported PMS are feeling the heat of Dangote’s decision to slash prices. Though it is a good thing to reduce petrol prices, it is taking a toll on our business. That’s the simple truth,” a dealer who spoke anonymously, lamented in a chat with The PUNCH.
Another retailer explained that importation is becoming less attractive, as Dangote’s continuous price reductions are discouraging fuel imports altogether.
“Dangote understands the competition in the business, and this latest reduction will further discourage fuel imports. There will be losses, as we may have to drop our prices too. At the end of the day, some of us will source our products locally. I will just advise Dangote to create a level playing field for all,” the retailer stated.
Importers in Crisis as Landing Costs Soar Above Dangote’s Prices
Petrol importers’ plights are compounded by landing cost of petrol products. The cost reached N927 per liter last week—significantly higher than Dangote’s new ex-depot price of N825 per liter.
This means that importers are selling at a loss, as they cannot afford to compete with Dangote’s lower prices. Some have already begun reconsidering their role in the market, as importing fuel at a higher cost while competing with a local refinery selling at cheaper rates is financially unsustainable.
Confirming these concerns, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, told The Punch that Dangote’s pricing strategy is threatening fuel importers.
“Dangote may ‘kill’ fuel importers by this continued lowering of prices. All those importers who have challenged Dangote that they wanted to import cheaper fuel—as they’re just nearing the seashore—Dangote will reduce the price, and they will run into trouble,” Ukadike remarked.
He explained that Dangote is taking full advantage of Nigeria’s deregulated market, making it difficult for independent fuel importers to remain competitive.
Cheaper Fuel for Nigerians With Risk of a Monopoly
While consumers celebrate the price reductions, analysts warn that Dangote’s pricing strategy could eventually eliminate competition, leading to a long-term monopoly in the sector.
Industry experts have also noted that if importers are completely squeezed out of the market, Dangote will have total control over fuel pricing in Nigeria. This could potentially drive prices up in the future once competition is eliminated.