Several petrol marketers have suspended operations following a downward review of ex-depot prices by Dangote Refinery.
The decision has affected fuel supply in parts of Abuja as retailers assess the impact of the revised price structure on existing inventory.
The price adjustment announced on Tuesday, April 16, reduced Dangote Refinery’s ex-depot rate for premium motor spirit to N835 per litre.
This is the second reduction within a week after an earlier adjustment to N865 per litre despite marketers holding old stock at previous rates.
MRS filling stations along the Kubwa Expressway and other locations in Abuja have not dispensed fuel since the announcement.
A station official disclosed that selling at the new price would result in losses due to old stock.
Other marketers have adopted the new pricing regime and are currently retailing petrol between N910 and N920 per litre.
Meanwhile, the Nigerian National Petroleum Company Limited adjusted its retail price to N935 per litre in response to market developments.
Retailers under the Petroleum Retailers Outlet Owners Association of Nigeria expressed concern over the frequent changes in pump prices.
According to the association’s president, Billy Gillis-Harry, the inconsistent pricing environment is destabilizing for operators in the downstream sector.
He warned that sudden price reductions without clear economic indicators limit the capacity of retailers to recover costs and maintain supply.
The Independent Petroleum Marketers Association of Nigeria also raised concerns over the financial implications of the recent adjustment.
Speaking on behalf of the association, Chinedu Ukadike said marketers with unsold inventory purchased at higher rates face losses running into billions of naira.
The ongoing price reduction was the result of the federal government’s confirmation that the naira for crude swap arrangement with local refiners is permanent, and the current decline in global oil prices to $66 per barrel.
The shift in policy and pricing strategy is expected to influence short-term supply dynamics and force smaller marketers to reassess their operational models.
Dangote Refinery with a production capacity of 650000 barrels per day has become a major force in the domestic fuel market.
Its recent price reductions have triggered new competitive pressures across the downstream value chain.
Petrol prices across Nigeria now range between N890 and N950 per litre, depending on the location and retail channel.
The downstream sector continues to monitor the effects of Dangote Refinery’s pricing decisions on national distribution and consumer pricing.
