Following Dangote Refinery's recent petrol price reduction to ₦835 per litre, several filling stations in Abuja have temporarily closed due to financial losses from unsold higher-priced stock. This move underscores the challenges faced by retailers amid fluctuating fuel prices.
HIGHLIGHTS
- Dangote Refinery's ex-depot price for petrol decreased to ₦835 per litre on 16 April 2025.
- Filling stations like MRS along Abuja's Kubwa Expressway ceased operations, citing losses from unsold stock.
- Some stations are set to reopen, adjusting prices to around ₦910 per litre.
- Other retailers, including AP, Ardova, and Optima, are selling petrol between ₦910 and ₦920 per litre in Abuja.
- Industry leaders express concern over the impact of frequent price changes on retailers' financial stability.
The recent petrol price drop by Dangote Refinery has highlighted the vulnerability of filling stations holding older stock purchased at higher prices. While the price reduction benefits consumers, it poses significant challenges for retailers who may face financial strain due to unsold inventory. Industry stakeholders are calling for more predictable pricing strategies to ensure the sustainability of businesses and the broader economy.
