Reveled! Marketers lose N141bn after petrol price reduction

• Due to the caller terms drop, merchandise importers whitethorn suffer an mean of N466.62 cardinal each time and N13.998 cardinal per month
• This occurred arsenic the Dangote Petroleum Refinery's updated ex-depot terms is present N33.33 little than the emblematic landing outgo of 1 liter of imported gasoline
• This is expected to alteration the dynamics of the marketplace successful favour of the indigenous shaper and driving petroleum importers retired of the Nigerian market

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Importers of petroleum merchandise whitethorn suffer an mean of N466.62 cardinal per time and N13.998 cardinal per period owed to the caller terms simplification successful the ex-gantry outgo of locally refined Premium Motor Spirit announced past week by the Dangote Petroleum Refinery.

Photo Credit: Contributor
Source: Getty Images

This came arsenic caller industry statistic showed that the revised ex-depot terms provided by the Dangote Petroleum Refinery is present N33.33 little costly than the mean landing outgo of a litre of imported gasoline. It is anticipated that this stark quality volition displacement marketplace dynamics successful favour of the home producer, perchance pushing petroleum importers retired of the Nigerian market.

But compared to the mean of N2.5 cardinal per time and N75 cardinal per period mislaid successful March arsenic a effect of terms changes, the caller fiscal nonaccomplishment to beryllium incurred is an 81% decrease.

The inclination is associated with marketers importing little petrol and a closing terms differential betwixt imported and domestically refined fuel.

How stakeholders react

Industry participants constituent retired that arsenic the Dangote Refinery reshapes contention and asserts its pricing power, this lawsuit whitethorn awesome a turning constituent successful Nigeria's petroleum proviso chain.

Last Wednesday, the refinery issued its 3rd pricing alteration successful six weeks, lowering its ex-depot terms by N30 to N835 per litre. This was a 3.5% driblet and a N45 driblet from the erstwhile merchantability terms of N880 per liter.

Nigerians volition present acquisition from its partners crossed the country, including MRS, AP (Ardova), Heyden, Optima Energy, Hyden, and Tecno Oil, astatine revised pricing, it said.

Marketers of petroleum goods commented connected the situation, implying that they could suffer billions of naira since they mightiness person to merchantability gasoline astatine a terms importantly little than their costs.

Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, praised the alteration successful Dangote Petrol's gantry prices but bemoaned the information that marketers with outdated inventory indispensable merchantability astatine a loss.

“It is simply a bully improvement for Nigerians; however, marketers with the aged terms banal volition person to suffer billions of naira. It is affecting marketers, but based connected the naira-for-crude, the effect indispensable beryllium reflected successful the pump price,” helium said successful an interview.

Importing marketers, who are mostly members of the Depot and Petroleum Products Marketers Association of Nigeria, are expected to suffer an mean of N466.62 cardinal per time and N13.998 cardinal per month, according to the PUNCH research.

As of Wednesday, April 16, the landing outgo of gasoline was N868.33 a liter, according to the Major Energies Marketers Association of Nigeria. The ex-depot terms of PMS astatine the Dangote refinery is N835; this is N33.33 more.

Speaking to State House correspondents past week, Farouk Ahmed, the Chief Executive of the NMDPRA Authority, revealed that the magnitude of gasoline imported decreased from 44.6 cardinal liters per time successful August 2024 to 14.7 cardinal liters arsenic of April 13, 2025.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority precocious reported that Nigeria's daily PMS consumption was astir 50 cardinal liters per day.

After Dangote announced the terms reduction, substance importers told Punch that dealers could beryllium forced to merchantability beneath their outgo pricing since customers would lone acquisition from vendors offering little rates for petrol.

According to Dr. Billy Gillis-Harry, president of the Petroleum Products Retail Outlets Owners Association of Nigeria, the assemblage is experiencing terrible volatility arsenic a effect of the capricious terms changes.

The revised ex-depot terms provided by the Dangote Petroleum Refinery is present N33.33 less. Photo Credit: Contributor
Source: UGC

NNPC announces caller substance terms beneath Ardova, MRS, others

Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) has slashed its petrol pump terms to N910 per litre connected Wednesday, April 16.

This caller terms represents a N15 simplification from the erstwhile pump terms of N925 per litre.

While Mobil filling stations person reduced their terms to N925 per litre, down from N940, Petrocam lowered its terms from N940 to N930.

PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!

Source: Legit.ng