Oil marketers face massive monthly losses of ₦102.48bn in a brutal petrol price war with Dangote Refinery

Petroleum importers and marketers in Nigeria are reeling from substantial financial losses amid an intensifying price war triggered by Dangote Petroleum Refinery’s sharp reduction in petrol prices.

The refinery slashed its gantry price from ₦828 per litre to ₦699 per litre, forcing competitors to follow suit and resulting in projected monthly losses of up to ₦102.48 billion for importers. Based on daily national consumption of 50 million litres, with importers supplying around 26.48 million litres, the ₦129 per litre price gap translates to daily losses of approximately ₦3.41 billion.

Private depots in Lagos have cut prices by about 14%, with examples including reductions from ₦828 to ₦710 per litre, leading to weakened sales, shrinking margins, and potential stock overhang across the supply chain.

Importers with undischarged cargoes still on waterways are particularly hard-hit, struggling to manage unsold stocks purchased at higher rates. One industry spokesman noted the severe challenges, stating that those with imported petrol face uncertain prospects in the current market.

Retail marketers are also suffering, forced to sell existing stocks bought at around ₦828 per litre below cost, with estimated collective losses exceeding ₦80 billion. Marketers have described the abrupt ₦129 reduction as a “big shock,” highlighting difficulties in coping with the interconnected impacts on filling stations holding large volumes.

Industry voices have called for compensation from Dangote Refinery, such as discounts on future purchases, to mitigate the ongoing “financial bleeding” from selling at reduced rates to remain competitive.