In the price war with NNPC, Dangote announced a large gasoline price reduction.
Nigeria News Nalin Fierce competition in the downstream oil sector in Nigeria has intensified as Dangerte oil refineries cautiously cut gasoline cargo from N825 per liter to N815 per liter, the report said.
The price adjustment, which came into effect on Thursday, March 13, was enthusiastic from oil marketers, prompting many to bypass private warehouse owners and source supplies directly from refineries.
Industry analysts predict that a reduced N10 per liter could trigger a response from private fuel warehouses, forcing them to lower prices to stay competitive.
Meanwhile, the cost of imported gasoline has also dropped to N774.72 per liter, marking a reduction in Dangote’s loading gantry with the previous N825 per liter. Marketers suggest that if this trend continues, the retail pump price of premium automotive spirits, PMS (commonly called gasoline) may drop to around N800 per liter.
Continuous price adjustments have intensified competition, with many retail marketers favoring imported gasoline over local refined products due to cost advantages, exacerbating the industry’s full-scale price war.
The National Propaganda Secretary of the Independent Marketers Association of Nigeria said: “Crude oil is a major component of fuel production, so Ipman, the National Propaganda Secretary of the Independent Marketers Association of Nigeria, said: “Therefore, its price has further reduced the price of gasoline, and it is possible to drop to N800 per liter. ”
To strengthen its market position, the 650,000 barrels per day refinery further lowered its gasoline loading price to N815 per liter, effective Thursday.
However, with the N10 tax imposed by the midstream and downstream oil regulator NMDPRA, Nigeria, the ultimate cost to buyers rose to N825 per liter.
In response to the price adjustment, private warehouse owners in Lagos also modified their exchange rates downwards, bringing their loading price to N825 per liter, down from N830 per liter collected earlier this week.
Marketers spoke anonymously due to lack of authorization, and he confirmed the development, noting: “Yes, I saw PFI, N815 Ex-Depot, N825, including NMDPRA N10. Marketers are selling N826–N830.”
A second oil marketer confirmed the recent drop in gasoline prices, attributed it to competitive market dynamics.
Further market inspections show that private warehouses have now adjusted their prices to be consistent with the prices set by Dangote oil refinery. However, some warehouses are slightly faster.
The loading price of AA Rano and Menj Depots remains the same at N830 per liter, while the Bovas Depot sells for N826 per liter. Wosbab sets its price at N831 per liter, Aiteo modified it from N832 per liter to N827 per liter, while the price of the integrated warehouse is N826 per liter and the price of the rain oil warehouse is N831 per liter.
Ipman’s national propaganda minister acknowledged that the price war was driven by the decline in the cost of imported gasoline. He described the situation as a deregulated beauty and explained that the Dangot refinery was determined to maintain its market share with its large supply of refined gasoline, and therefore the price adjustment.
Despite these shifts, the landing cost of imported gasoline has risen from N774.82 per liter to N803.35 per liter. However, according to Nigeria’s major energy marketers association, this is still below the former sales price of Dangote gasoline.
Meanwhile, an official at the Dangote refinery spoke anonymously, claiming he was not aware of the new price changes, but certainly oil marketers have reported the adjustment.
“We don’t have any information about this at the moment, but we will try to clarify tomorrow. You can report what the marketers told you, but when I talk to you, we don’t have any information,” the official said.
