Nigeria Dangote Refinery: Marketers Warn Recent Petrol Price Drop Is Unsustainable

The Digest:

A recent reduction in petrol prices has brought temporary relief to Nigerians, but industry retailers and marketers warn the trend is artificial and unsustainable. In exclusive interviews with Daily Post, PETROAN and IPMAN leaders expressed deep concerns that the current pricing distorts market fundamentals and risks future scarcity.

Key Points:

• Petrol prices recently dropped to between ₦885 and ₦945 per litre in major cities.
• The reduction followed a federal government duty suspension and Dangote Refinery's ex-depot price cut.
• However, ex-depot prices have already risen again to ₦854-₦860 per litre.
• PETROAN President Billy Gillis-Harry stated prices are "not guided by fair market pricing."
• IPMAN's Chinedu Ukadike noted deregulation is ineffective with only one functional major refinery.
• Both associations warn that reliance on Dangote alone creates vulnerability and potential supply shocks.
• Marketers fear capital depletion could lead to another round of scarcity and price spikes.

This fleeting price relief reveals a deeper structural fragility, a market dancing to a single refinery's tune, where today's celebrated discount may become tomorrow's supply crisis in a sector yearning for genuine competition.

Sources: Daily Post, The Cable