Petroleum importers are lamenting seriously over loss of billions of naira invested in the importation of PMS since Dangote Petroleum Refinery further reduced the price product.
On Wednesday, ENigeria News reported that Dangote Petroleum Refinery again announced reduction in price of petrol from N890 to N825 per litter effective from February 27, 2025. The price reduction was the second time the company would do so within a month, and the third one in a space of two months, leading to heavy loss on the part of importers of petroleum product who refused to patronize the Dangote refinery.
Sources revealed that the importers who had already placed order for products would be forced to now sell below cost price leading significant loss.
According to some of the importers, “the Dangote refinery is gradually making importation less attractive with how it drops the prices of petrol and diesel lately.”
This newspaper also gathered that the landing cost of PMS was around N927 a liter in the past week, an amount higher than the ex-depot price of the Dangote.
The importers said they have been managing to sell the imported products with little or no margin due to the need to compete well in the market.
“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 price, it is taking a toll on our business. That’s the simple truth,” a dealer who spoke to our correspondent in confidence due to the nature of the matter, stated.
You would recall that Dangote had been in a cold war with some importers who insisted on boycotting his refinery for imported products for reasons still unknown.
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ENigeria News reports that the Nigerian Midstream and Downstream Petroleum Regulatory Authority confirmed this last week after it stated that about 50 per cent of domestic fuel supply comes from imports.
Meanwhile, in a statement released by Dangote group and made available to ENigeria News the management of the Dangote refinery said the strategic price adjustment is designed to provide essential relief to Nigerians in anticipation of the upcoming Ramadan season, while also supporting President Bola Tinubu’s economic recovery policy by alleviating the financial burden on the Nigerian populace.
Reacting to the news, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, confirmed that the price reduction would definitely affect importers, stressing that Dangote was maximising the advantages of deregulation.
“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 sea shore, Dangote will reduce the price and they will run into trouble,” Ukadike stated in his personal opinion.
Ukadike described the price slash as a welcome development, saying the association will continue to patronize the refinery.
