By Muhammad Mamman
Nigeria’s petroleum importers and marketers are grappling with massive financial losses following a fierce petrol price war sparked by Dangote Petroleum Refinery’s dramatic cut in ex-depot prices.
The refinery recently reduced its gantry price from ₦828 to ₦699 per litre, a move that has upended market dynamics and forced competing importers and depot owners to slash prices to remain competitive. Industry estimates indicate that the development could translate into combined losses of about ₦102.48 billion monthly for petrol importers.
With Nigeria’s daily petrol consumption estimated at 50 million litres and importers supplying roughly 26.48 million litres of that volume, the ₦129 per litre price differential is costing importers approximately ₦3.41 billion each day.
Private depots, particularly in Lagos, have responded by cutting prices by around 14 per cent, with some reducing rates from ₦828 to about ₦710 per litre. While the reductions have filtered through the supply chain, they have also weakened sales, compressed margins and raised fears of stock overhang across depots and filling stations.
Importers with undischarged cargoes on Nigerian waterways have been hit hardest, as petrol purchased at higher international prices now struggles to find buyers at profitable rates. An industry source said operators with imported products face “very uncertain prospects” as the market adjusts to the new pricing regime.
Retail marketers are also counting heavy losses, having to sell existing stocks acquired at around ₦828 per litre well below cost. Industry figures suggest collective losses at the retail end could exceed ₦80 billion, with marketers describing the sudden ₦129 price cut as a “big shock” that has disrupted cash flow and inventory planning.
Concern is growing within the sector over the knock-on effects on filling stations holding large volumes of high-priced stock, as well as on the broader supply chain. Some industry players have appealed to Dangote Refinery to consider compensatory measures, including discounts on future purchases, to cushion what they describe as ongoing “financial bleeding”.
As the price war deepens, analysts say the situation underscores the disruptive impact of large-scale domestic refining on Nigeria’s downstream petroleum market, leaving many import-dependent operators struggling to survive in an increasingly competitive landscape.
