By Abdullahi Inuwa
Importers of petroleum products are raising concerns as the Dangote Refinery continues its aggressive price cuts, a move that threatens to squeeze out foreign fuel suppliers.
In a fresh round of price reductions, Dangote on Wednesday slashed its ex-depot petrol price by N65, bringing it down from N890 to N825 per litre, effective February 27. This marks the second price drop this year and the third in two months.
With the landing cost of Premium Motor Spirit (PMS) hitting N927 per litre last week, importers warn they are now selling at razor-thin margins, or even at a loss, just to stay competitive.
“Some of us who have imported PMS are feeling the heat,” a dealer lamented. “Dangote’s price cut is good for consumers but bad for our business. If this trend continues, many of us will have no choice but to stop importing.”
Industry experts suggest Dangote’s strategy could completely shift Nigeria’s fuel supply dynamics. National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, acknowledged the impact on importers but praised Dangote’s market disruption.
“Dangote may ‘kill’ fuel importers with these continuous price reductions,” Ukadike said. “As soon as importers bring in products, Dangote drops prices, making it impossible for them to compete. However, it’s a welcome development for the industry. Independent marketers will continue to support local refining.”
While some dealers are calling for a level playing field, others believe the era of fuel importation is coming to an end. As the market adjusts, the big question remains—will Dangote’s pricing strategy drive importers out of business entirely?
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