Nigerian Marketers Strike Global Deal to Cut Petrol Price to N700/Litre Amid Industry Shake-Up

Nigerian petroleum marketers have partnered with international suppliers to import cheaper fuel, aiming to reduce petrol prices to around N700 per litre. This move is driven by the need to bypass the fluctuating prices from the Dangote refinery, which have reportedly crippled many local businesses. The landing cost for the imported petrol is expected to be about N650 per litre, prompting retailers to pivot quickly in preparation for this alternative supply chain. This marks a significant shift in the downstream oil sector and could provide some relief for consumers burdened by high fuel prices.

Billy Gillis-Harry, president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), explained that marketers are desperate for stable supply and pricing. The unpredictable pricing from local refineries has pushed many into debt, forcing them to seek cheaper, more reliable sources abroad. Gillis-Harry warned that without improved conditions, fuel queues could reappear due to marketers’ inability to purchase products at a loss. He emphasized the importance of functional refineries and a more open market to stabilize supply and ensure survival of the retail sector.

Concerns are also growing over diesel availability, with reports suggesting Aradel Holdings’ refinery may not be operational. Although Aradel denied this, insisting production remains at 11,000 barrels per day, any disruption at this facility could exacerbate diesel scarcity and further destabilize the energy market. Aradel’s refinery has historically contributed significantly to the company’s revenue and the local fuel supply, particularly in diesel and other refined products.

Meanwhile, Aliko Dangote defended his refinery’s operations and capacity, asserting that the 650,000-barrels-per-day facility is more than capable of meeting both national and regional demand. Speaking during a high-profile visit by ECOWAS officials, Dangote stressed that local refining has already led to substantial fuel price reductions. For instance, the price of diesel has fallen from N1,700 to N1,100, demonstrating the impact of his refinery’s output on the broader economy.

Dangote further highlighted that Nigerian consumers are paying significantly less for petrol compared to neighbouring countries, attributing this to the benefits of local refining. He criticized Africa’s continued reliance on imports and urged for increased intra-continental trade and industrialisation. ECOWAS President Omar Alieu Touray echoed these sentiments, calling the Dangote refinery a symbol of hope and a model for what Africa’s private sector can accomplish in building self-reliant economies.

Source: Leadership