Despite a global free fall in crude oil prices, the Dangote Petroleum Refinery has kept petrol prices high, incentivizing a fresh wave of fuel imports into Nigeria.
S&P Global revealed that while world crude prices dropped sharply, Dangote’s gantry prices barely budged — a mere 1.7% dip compared to a 17.9% global plunge. This has triggered a fuel price war, with independent retailers undercutting Dangote’s pricing and sparking fierce competition at petrol stations across the nation.
Our investigations show Dangote dropped petrol prices to N835 per litre but urged partners to retail at N890 in Lagos. Independent retailers like SGR even slashed prices lower to N878 per litre. Sources close to the refinery disclosed that a major price crash was planned for Aliko Dangote’s 68th birthday but was stalled due to issues with the naira-for-crude deal.
Now, with the Federal Government restoring the naira-for-crude policy and crude prices still tumbling, Dangote is reportedly preparing for an aggressive price cut to make petrol more affordable for Nigerians.
Meanwhile, S&P Global notes that changes in global gasoline flows, particularly from Europe to West Africa, are reshaping fuel import dynamics, with a surge of 4 million metric tonnes set to arrive in West Africa by April 27 — the highest in over two years.
Source: Punch Ng
