Oil marketers have decided to scale down fuel purchases due to the frequent downward price adjustments between Dangote Petroleum Refinery and the Nigerian National Petroleum Corporation Limited (NNPCL).
The price war, which began in November 2024, saw Dangote Refinery slashed its ex-depot price of Premium Motor Spirit (PMS) from ₦990 to ₦970 per liter, eventually slashing it further to ₦825 per liter by February 27, 2025.
In response, NNPC lowered its pump price to ₦860 per litre on March 3, 2025, indicating a continued price competition among the major fuel vendors.
Following the persistence price reduction between the petrol merchants, Oil marketers, under the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN), who have struggle to mitigate heavy losses, raised an alarm over the huge financial damages, as they demand that fuel price adjustments should occur only every six months to ensure stability.
Speaking, IPMAN National Vice President, Hammed Fashola, noted that while Nigerians benefit from the price reductions, the instability is wreaking havoc on marketers.
“The ongoing price reduction is affecting oil marketers negatively because we are losing money. If I buy products at ₦900 per litre today and the price drops by evening, that becomes a major problem, especially if the product was meant to last a month,” he explained.
Fashola confirmed that marketers have significantly reduced bulk purchases to minimize risks, adding, “Any reasonable marketer would take precautions. If prices continue fluctuating, everyone will remain cautious. However, if prices stabilize, businesses will resume normal operations.”
The Major Energies Marketers Association of Nigeria (MEMAN) revealed that the landing cost of imported PMS fell to ₦774.82 per litre on Tuesday, dropping below Dangote Refinery’s ₦825 per litre ex-depot price.
This reduction follows the decline in global crude oil prices, with Brent crude falling to $70 per barrel and U.S. WTI crude trading at $66.70 per barrel as of March 12, 2025.