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In a move aimed at easing economic pressures on Nigerians, the Dangote Petroleum Refinery announced a significant reduction in the ex-depot price of Premium Motor Spirit (petrol) from N950 to N890 per litre on Saturday night.
The decision, described as a response to declining global crude oil prices, has been hailed as a step toward aligning local fuel costs with international market trends. However, while consumers stand to benefit, the sudden price cut has left many petroleum marketers grappling with financial losses.
According to a statement by Anthony Chiejina, the Group’s Chief Branding and Communications Officer, the refinery’s decision reflects its commitment to passing on the benefits of favourable global energy dynamics to Nigerians. “This price adjustment is in response to favourable developments in the global energy sector and a significant decline in international crude oil prices,” the statement read. It also urged marketers to ensure the reduced prices are reflected at retail outlets, promising a ripple effect of economic relief across the country.
While the announcement was welcomed by many, it came as a blow to petroleum marketers who had purchased fuel at the higher rate just hours before the price reduction. These marketers now face the grim prospect of selling their stock at a loss, with some reportedly staring at debts running into millions of naira.
Hammed Fashola, Vice President of the Independent Petroleum Marketers Association of Nigeria, acknowledged the dual impact of the price cut. “The price reduction is a good development, but it will surely affect business in both negative and positive ways,” he told The PUNCH. On one hand, the lower prices are expected to ease the financial burden on consumers and stimulate economic activity. On the other, marketers who bought fuel at the previous rate are now caught in a precarious position, forced to absorb losses or risk losing customers to competitors who can offer the new, lower prices.
The refinery’s decision is also seen as a strategic response to recent warnings from traders who threatened to resume fuel imports if locally refined products remained more expensive than foreign alternatives. By reducing its ex-depot price, Dangote has effectively undercut the competition, reinforcing its dominance in the domestic market.
For now, the price cut represents a mixed bag—a win for consumers and a challenge for marketers. As the dust settles, the broader implications for Nigeria’s fuel distribution chain remain to be seen. Will this move stabilize the market and drive long-term economic relief, or will it strain the already fragile ecosystem of petroleum marketers? The answer lies in how effectively stakeholders navigate this new reality. One thing is certain: in Nigeria’s volatile energy landscape, change is the only constant.
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/dangote-refinerys-price-cut-relief-for-consumers-pain-for-marketers/
