Petrol Importers Bemoans Continuous Reduction In Price By Dangote
Importers of petroleum products have expressed their concerns regarding the continuous lowering of petrol prices by the Dangote Refinery.
Several importers have indicated that dealers might be forced to sell at a loss, as consumers are likely to purchase petrol only from the outlets offering the lowest prices.
On Wednesday, the Dangote refinery revealed that it has decreased the ex-depot (gantry) price of petrol by N65, lowering it from N890 to N825 per litre, effective today, February 27. This marks the second price drop of the year and the third adjustment in two months.
Some importers have noted that the Dangote refinery is diminishing the appeal of importing by significantly reducing the prices of gasoline and diesel in recent times.
It was reported that the cost of landing Premium Motor Spirit (PMS) reached approximately N927 per litre last week, which is higher than the ex-depot price set by Dangote.
The importers mentioned that they have been successfully selling the imported goods with minimal or no profit margins, as it is essential for them to remain competitive in the market.
One dealer said, “Some of us who have imported PMS are feeling the heat of Dangote’s decision to slash prices. Though it is a good thing to reduce petrol price, it is taking a toll on our business. That’s the simple truth.”
One dealer remarked that the Dangote refinery is lowering its prices to deter fuel imports, indicating that many businesses may need to cease importing petroleum products from abroad, “Dangote understands the competition in the business and this latest reduction will further discourage fuel imports. There will be losses as we may have to drop our prices too. At the end of the day, some of us will source our products locally. I will just advise Dangote to create a level playing field for all.”
Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, has acknowledged that importers could face financial losses due to the recent reductions in prices.
He said, “Dangote may ‘kill’ fuel importers by this continued lowering of prices. All those importers who have challenged Dangote that they wanted to import cheaper fuel, as they’re just nearing the sea shore, Dangote will reduce the price and they will run into trouble.
“It is a welcome development. We laud Dangote’s achievement of bringing the 650,000 single-train refinery to Nigeria. Independent marketers have justified supporting the removal of subsidies and supporting our local companies. We will continue to patronise Dangote via MRS, and we will do everything possible to support them.
“Our problem now is distribution, we want all the satellite depots to be in place and the pipelines repaired so that this product can be sent to the nooks and crannies of this country seamlessly. That will also further reduce the price. So, as independent marketers, we welcome the development of the Dangote refinery petrochemical mine. Wherever the product is cheap, we definitely will buy it.”