Filling stations selling below Dangote price because Dangote Refinery price not low enough - S&P Global report

• For weeks, the Dangote Refinery has been staying up of the terms warfare with regular cuts to support its partners selling astatine the lowest prices
• The NNPC was besides successful the terms war, with occasional terms cuts to springiness Nigerians a woody they cannot refuse
• Recent checks, however, amusement that a fewer autarkic marketers are spicing up the game, with prices little than Dangote Refinery

Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful business reporting crossed integer and mainstream media.

Economic experts similar Bismarck Rewane earlier explained that Nigerians would beryllium the eventual beneficiaries successful the current substance terms war, arsenic they would ever get the champion deals.

That prediction has turned retired to beryllium existent successful caller weeks, with the Nigerian National Petroleum Corporation Limited (NNPC) and Dangote Refinery perpetually adjusting prices to enactment up successful the competition.

However, caller checks amusement that much players are joining the contention by offering prices little than those of Dangote Refinery and the NNPC.

These filling stations are owned by different autarkic marketers, and are selling little than the Dangote Refinery partners. Photo credit: Pius Utomi Ekpei/Contributor
Source: Getty Images

List of filling stations selling beneath Dangote price

Data from petroleumprice.ng shows that Dangote Refinery sold PMS astatine N840 connected Thursday to its partners.

This is the aforesaid terms offered by immoderate players astatine the filling station, making them cheaper than the Dangote refinery partners.

• Matrix successful Lagos sold astatine N840
• Rain Oil successful Lagos sold substance astatine N840
• Aiteo and Aipec sold adjacent little astatine N838.

The PUNCH study besides confirms that prices alteration from 1 authorities to the other, cheaper successful Lagos, and rising arsenic 1 moves further southbound owed to logistics.

To marque the contention much interesting, determination are besides filling stations selling successful the aforesaid terms scope arsenic Dangote Refinery partners.

• Matrix successful Warri sells substance astatine N870.
• First Fortune sold astatine N868.
• Sigmund, N875.
• Liquid Bulk, N870.
• Pinnacle, Mao, Sahara, AA Rano sold astatine N889.
• The SGR filling presumption successful the Sagamu and Mowe axis of Ogun sold astatine N855 per litre arsenic of Thursday.

Checking the prices connected Thursday, Dangote Refinery partners MRS and Heyden were seen to beryllium selling astatine N890 and N885 per litre successful Ogun state.

Interestingly, respective filling stations successful Ogun state, peculiarly on the Sagamu-Benin and the Lagos-Ibadan Expressways, were selling beneath the Dangote Refinery partners.

Dangote cuts terms arsenic FG returns naira-for-crude deal

Recall that Dangote Refinery instantly announced a terms chopped aft the national authorities made its determination to proceed with the naira-for-crude deal.

Landing outgo of imported substance dropped subsequently, but the section refinery dropped its prices beneath to enactment ahead.

There has besides been respective terms cuts since then, but a study from S&P Global suggested that the terms cuts are not charismatic capable to halt substance importation into Nigeria, the PUNCH reports.

S&P Global says Dangote Refinery's Price is not debased enough

S&P Global's study said the terms cuts from Dangote Refinery were not commensurate with the planetary autumn successful prices.

S&P Global noted that adjacent erstwhile planetary prices dropped astir 18%, Dangote Refinery lone slashed terms by little than 2%. Photo credit: Dangote Group
Source: UGC

Examining the reasons wherefore substance importation continues contempt section production, the study said;

“Incentives to vessel products to West Africa person besides travel from the pricing astatine Nigeria’s Dangote refinery. While level prices person been driven down massively amid falling crude prices, Dangote has not lowered gantry prices for motortruck volumes significantly.“Between April 1 and April 9, the Eurobob M1 swap fell from $734.25 per metric tonne to $603/MT, a 17.9 per cent fall, earlier recovering somewhat. But implicit the aforesaid period, Dangote’s motortruck terms astatine the gantry dropped conscionable 1.7 per cent from N880/litre to N865/litre (and aboriginal N835).

Marketers unreserved to import arsenic landing costs driblet beneath Dangote's

In related news, Legit.ng earlier reported that marketers rushed to import 156 cardinal litres, taking vantage of a large driblet successful landing costs.

This immense proviso was expected to trigger a crash successful substance prices, making it cheaper than the Dangote Refinery price.

The contention betwixt importers of substance and the Dangote Refinery continues to trigger much terms drops, week aft week.

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Source: Legit.ng