The president of Dangote Refinery has stated that fuel importers in Nigeria can expect to incur losses as the refinery provides Nigerians with affordable petrol options. This statement was made during a briefing at the 650,000-barrel-per-day refinery in Lagos, where he emphasized that Nigerians now have a choice between purchasing higher-quality fuel at a lower price or opting for blended PMS at a higher rate.
According to the refinery’s president, the choice is clear: importers will continue to lose out as long as Nigerians benefit from locally refined products. He cautioned that those who choose to continue importing fuel despite the availability of local alternatives should be prepared to face the consequences. The president also noted that the retail fuel price nationwide should not exceed N740 per liter.
This development comes on the heels of the refinery’s decision to reduce its gantry fuel price by 15.99 percent to N699 per liter, a move made just three days prior. However, as of Sunday night, fuel pump prices in Abuja remained at N905 and N937 per liter, indicating a discrepancy between the refinery’s price and the prices at the pump.
The Dangote Refinery’s capacity to produce 650,000 barrels per day is significant, given Nigeria’s historical reliance on fuel imports. The refinery’s operations are expected to have a substantial impact on the country’s fuel market, potentially disrupting the business models of importers. As the refinery continues to produce and supply fuel to the local market, it remains to be seen how importers will adapt to the changing landscape.
The Nigerian government has been working to increase local fuel production and reduce reliance on imports. The Dangote Refinery is a key part of this effort, and its operations are being closely watched by industry stakeholders and consumers alike. As the situation develops, it is likely that fuel prices and availability will continue to be major topics of discussion in Nigeria.
