Oil marketers and petroleum importers are counting heavy losses following a fierce petrol price war sparked by the Dangote Petroleum Refinery.
The refinery’s decision to slash its gantry price from ₦828 to ₦699 per litre has sent shockwaves through Nigeria’s downstream sector, forcing competitors to cut prices or risk losing market share.
Industry estimates indicate that importers could lose as much as ₦102.48bn monthly as a result of the sharp price differential.
With Nigeria’s daily petrol consumption estimated at 50 million litres, importers supplying about 26.48 million litres are bearing the brunt of the price drop.
The ₦129 per litre gap has translated to daily losses of roughly ₦3.41bn for importers who bought petrol at higher rates before the price cut.
Private depots in Lagos have responded by slashing prices by about 14 per cent, with some reducing rates from ₦828 to around ₦710 per litre.
However, the cuts have weakened sales volumes, squeezed margins and raised fears of stock overhang across the supply chain.
Importers with undischarged cargoes on Nigerian waterways are among the worst hit, as they struggle to sell products purchased at significantly higher prices.
An industry source said marketers with imported petrol were facing uncertain prospects, describing the situation as “extremely challenging”.
Retail marketers are also feeling the impact, having been forced to sell existing stocks bought at about ₦828 per litre at a loss to remain competitive.
Collective losses among retailers are estimated at over ₦80bn, according to industry calculations.
Marketers described the sudden ₦129 price cut as a “big shock”, noting that filling stations holding large volumes were particularly exposed.
Some industry players have called on the Dangote Refinery to offer compensation measures, including discounts on future purchases.
They argued that such interventions were necessary to stem what they described as continued “financial bleeding” in the downstream oil sector.
