Breaking News
Awujoola yusuf babatunde
Apr 18 2025
141
The price of the refinery's petroleum products in the Dangote Petroleum Refinery has been identified as of the incentives to bring refined petroleum products into Nigeria.
S&P Global, in a release, reported that the Dangote refinery's plunge in the price of petroleum products was not spectacular compared to the fall in prices globally.
The PUNCH recalls that the Dangote refinery has undertaken a string of petrol price cuts, triggering a downstream value chain operators' price war.
From about N1,100 per liter in September, the refinery was able to cut the petrol price to N860 in March, before the price rose again on the back of the suspension of the naira-for-crude deal.
But S&P Global said the 650,000 barrels per day capacity refinery did not cut gantry prices significantly, hence fuel imports.
"Also, driving product exports to West Africa has been priced at Nigeria's Dangote refinery. While truck volumes have had flat prices slashed significantly with falling crude prices, Dangote has not cut gantry prices for truck volumes significantly"y.
Between April 1 and 9, the Eurobob M1 swap fell from $734.25 per metric ton to $603/MT, a fall of 17.9 percent, before rising slightly. But over the same period, the truck price of Dangote at the gantry fell only 1.7 percent, from N880/liter to N865/liter, according to news from the MEMAN retail organization."
"This has triggered an avalanche of products to West Africa, where prices are still high locally, forcing marketers to purchase from foreign marketers in greater quantities," the report stated.
The Dangote refinery reduced the gantry price of petrol on Wednesday to N835, charging its partners to sell at N890 in Lagos.
"High-quality Dangote petrol will now be retailed at the following prices in all our partner retail outlets: key partners, including MRS, AP (Ardova), Heyden, Optima Energy, Hyde, and Techno Oil, will retail petrol at N890 per liter, down from N920 in Lagos."
"South-West will retail at N900 per liter, down from N930. North-West and North-Central will retail at N910 per liter, down from N940. South-East, South-South, and North-East will retail at N920 per liter, down from N950," the firm announced in a statement on Wednesday.
Our correspondent, who visited some of the fuel stations in Lagos and Ogun states, stated that other fuel stations have also reduced prices, unleashing a fresh round of competition.
SGR, an independent retailer with four filling stations at Mowe and Sagamu, reduced its price to N878, selling below the price of the Dangote refinery.
It was observed that Heyden now sells petrol at N885 per liter, whereas MRS sells it at N890. Some of the refinery's partners still sell the product between N920 and N910 per liter; the same is true in Nigerian National Petroleum Company Limited-owned stations.
An insider in the $20 billion Lekki-based refinery, who asked not to be named since he was not authorized to speak on the matter, told our correspondent that the president of the Dangote Group, Aliko Dangote, had since last month strategized to announce a significant petrol price cut on his 68th birthday, which occurred on Thursday.
However, the source clarifies that the plan could not be implemented as contemplated due to the naira-for-crude deal break.
The source stated that full implementation of the naira-for-crude deal and the latest crash in crude prices will present Dangote with another opportunity to cut costs and sell petrol at a manageable price.
He also confirmed that importers of Premium Motor Spirit were among the demonstrators because they wanted to continue importing petrol after they stopped accepting the naira.
