Nigeria: Dangote reduces petrol price by 50 naira per liter
Competition is driving the market toward further declines.
Written by Ziad Abdel Fattah:
Dangote Refinery in Nigeria announced a reduction Gasoline price At a distribution point of 50 naira per liter, reaching 1,075 naira, in the latest move in a series of successive reductions that reflect the escalating competition in the Nigerian fuel market after price liberalization.
The new reduction, which took effect immediately, a 4.4% decrease from the previous price of 1,125 naira per liter, coming just one week after the price was lowered from 1,175 to 1,125 naira per liter.
Unifying the loading price from coastal terminals
Sources in the oil sector confirmed that the refinery also unified the loading price from coastal stations with the price of the main loading platform at 1,075 naira per liter, thereby ending the price difference that existed between the two channels.
A senior refinery official said the decision is part of a strategy aimed at enhancing the competitiveness of petroleum products and expanding their availability across Nigeria, ensuring fuel reaches the largest possible number of marketers and consumers.
He added that the Dangote refinery has ended its marketing alliance, which included 20 companies, and has opened the door for loading petroleum products to all qualified marketers, whether through the main loading platform or coastal terminals. This move aims to expand the base of participation in the fuel distribution market and improve the efficiency of supply chains.
The new price has been officially approved
Industry sources indicated that the new price has been officially approved, reinforcing expectations that marketing companies will reduce gasoline selling prices to consumers at fuel stations in the coming days, with the cost of obtaining the product from the refinery decreasing.
This development comes at a time when the Nigerian government is affirming its continued implementation of a liberalized fuel market policy, where prices are determined by supply and demand mechanisms without direct government intervention.
In this context, the Minister of State for Petroleum Resources (Oil Sector), Heiniken Lokpobiri, affirmed that increasing local refining capacity contributes to enhancing competition, reducing fuel prices, and supporting the country's energy security.
Fuel prices should reflect the actual cost.
For its part, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stressed the need for fuel prices to reflect the actual cost of production and distribution, warning against any monopolistic practices or unjustified profit-making at the expense of consumers.
The Federal Competition and Consumer Protection Commission (FCCPC) also called for ensuring fair competition within the market, emphasizing the importance of increased supply and improved competition being reflected in fuel prices borne by citizens.
This reduction is an extension of a series of reductions made by the Dangote refinery since it began commercial operations and large-scale domestic gasoline supply, which enhances expectations of further fuel price reductions in the coming period, as competition in the Nigerian market continues to intensify.
