Marketers Hold Off On Pump Price Reduction Despite Dangote Refinery Slash

Despite the Dangote Petroleum Refinery’s recent cut in ex-depot petrol prices, many fuel marketers have declined to adjust their pump rates, citing potential financial losses.

The refinery reduced its ex-depot price of petrol from ₦880 to ₦840 per litre, effective June 30, according to Dangote Group’s spokesperson, Anthony Chiejina. This development followed a drop in global crude oil prices after the de-escalation of tensions between Israel and Iran.

While several depots in Lagos including RainOil, Matrix, and Emadeb have adjusted their prices to between ₦845 and ₦850, many filling stations are still selling petrol at between ₦920 and ₦935, especially in Ogun and other parts of the South West. NNPC-owned retail outlets were also selling at ₦915–₦925 as of Tuesday.

Petrol marketers say the delay in price adjustment is due to the need to exhaust old stock purchased at higher rates, some as high as ₦920 per litre. “If you bought fuel at ₦920 and it’s now ₦840, that’s an ₦80 loss per litre on 45,000 litres. That’s simply unsustainable,” explained Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN).

He stressed that no rational business owner would willingly incur that level of loss, warning that immediate price cuts would jeopardize the ability of marketers to restock. “We need to sell off existing inventory before implementing new prices. That’s just sound business,” he said.

However, Gillis-Harry acknowledged that some retailers who recently bought cheaper stock might lower their prices sooner, creating pressure on others to follow.

He also criticised the frequent and unpredictable price shifts in the market, urging regulators to consider a fixed pricing window to stabilize the sector. PETROAN previously recommended a six-month price lock to prevent sudden losses triggered by volatile crude prices.

Meanwhile, Eche Idoko of the Crude Oil Refinery Owners Association echoed similar concerns, predicting that pump prices would begin to fall gradually within a week or two, once old inventories are depleted and crude prices stabilize.

Fuel prices had spiked across the country less than two weeks ago after the Dangote refinery raised its ex-depot rate in response to the Israel-Iran conflict. Some northern regions saw prices reach ₦960–₦980 due to transportation costs and distance. sex videos gyspysue43

As global crude prices dipped to around $65–$67 per barrel in recent days, there is cautious optimism that local pump prices may follow suit albeit not immediately.