The Dangote Petroleum Refinery has announced a reduction in the ex-depot price of petrol by ₦65, bringing it down from ₦890 to ₦825 per litre, effective today, February 27, 2025. This marks the second price reduction this year and the third in two months. The refinery stated that this strategic price adjustment aims to provide relief to Nigerians ahead of the Ramadan season and support President Bola Tinubu's economic recovery policies by alleviating financial burdens on the populace.

However, this move has raised concerns among petroleum product importers. Some importers fear they may be compelled to sell below their cost prices, as consumers are likely to purchase fuel from cheaper sources. The Nigerian Midstream and Downstream Petroleum Regulatory Authority recently indicated that approximately 50% of domestic fuel supply still comes from imports, underscoring the significant role importers play in the market.

Industry stakeholders have noted that the competition between Dangote Refinery and other suppliers, such as the Nigerian National Petroleum Company Limited (NNPCL), has contributed to the recent drop in petrol prices. The Independent Petroleum Marketers Association of Nigeria (IPMAN) highlighted that this competitive environment benefits consumers through more affordable fuel options.

While consumers may welcome the price reductions, importers and some marketers express concerns about potential financial losses, especially those who recently purchased stock at higher prices. As the market adjusts to these changes, stakeholders will need to navigate the evolving landscape to balance competitiveness with economic viability.