Dangote Refinery Cuts Petrol, Diesel Prices But Most Stations Keep Old Rates
By Aboki Forex —
The Dangote Petroleum Refinery has reduced its ex-depot petrol price from N1,275 to N1,250 per litre. It also cut diesel prices from N1,800 to N1,700 per litre. The move is meant to make fuel more affordable and support economic activity.
Filling Stations Not Passing On The Cut
Despite the reduction, most filling stations across Nigeria have not lowered their pump prices. A market check by Daily Champion showed only a few outlets cut prices by between N5 and N10 per litre. Consumers are yet to feel the full benefit of the refinery's latest price review.
Industry stakeholders say the slow response highlights inefficiencies in the downstream sector. Reductions at depot level do not always lead to immediate cuts at retail stations.
Why The Delay
Market analysts point to several factors. These include existing fuel stocks bought at higher prices, transportation and logistics costs, distribution expenses, and different pricing strategies used by marketers. High-cost inventories are delaying the transfer of lower depot prices to consumers.
The development has raised concerns about the lack of effective monitoring systems. Experts say that although Nigeria's downstream market operates under a deregulated framework, greater transparency and stronger competition are needed for efficient price transmission.
Price War and Expansion Plans
Increased fuel imports and greater product availability are driving a price war. Suppliers are watching each other closely and adjusting their pricing strategies.
Meanwhile, Legit.ng earlier reported that Dangote Refinery plans to increase the number of crude oil grades it can process from about 40 to 130. The expansion aims to double the refinery's capacity to 1.4 million barrels per day. The refinery expects lower operating costs, more flexibility in sourcing crude, and stronger long-term export partnerships.