Marketers keep petrol prices high despite Dangote Refinery cuts

By Obas Esiedesa, Abuja

Fuel marketers in Abuja continued to sell Premium Motor Spirit (PMS) at the same prices more than 24 hours after Dangote Petroleum Refinery announced a reduction in its ex‑depot price.

Inspections revealed that major retail outlets had not yet adjusted their pump prices, despite the refinery’s earlier announcement of a N75 per litre cut.

At stations visited in the Federal Capital Territory, the Nigerian National Petroleum Company (NNPC) Retail and TotalEnergies outlets sold petrol at N1,335 per litre, while AA Rano sold at N1,350 per litre. AYM Shafa and Conoil outlets sold at N1,330 per litre.

The situation has led the public to expect that the reduction in Dangote Refinery’s gantry price would quickly translate into lower retail pump prices nationwide.

Dr. Billy Gillis‑Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), explained that pump prices are affected by several factors beyond refinery ex‑depot pricing.

He said transport, logistics, and stock acquisition costs all influence retail pricing.

“Prices reflecting at the pump are dependent on availability of the product, cost of purchase, logistics, and delivery to consumers,” he said.

Gillis‑Harry added that marketers often sell existing stock purchased at higher rates before adjusting to new lower prices, and that price reductions tend to lag behind increases because of inventory replacement dynamics.

He noted that market supply conditions and restocking pressures play a key role in why price hikes are immediate while reductions are slower.

Energy analyst Olabode Sowunmi said petrol pricing in Nigeria is shaped more by domestic logistics and supply‑chain costs than by global crude oil fluctuations alone.

He observed that while international crude prices influence global markets, their direct impact on Nigeria’s pump prices is limited under current arrangements.

Sowunmi explained that Dangote Refinery’s crude supply structure, which includes naira‑based transactions, also affects pricing dynamics, and that transportation and distribution costs within the country remain major drivers of final pump prices.

“So basically, our cost issues in terms of reflecting to the final person deal with our own logistics rather than geopolitics,” he said.

He added that the speed at which price reductions are passed to consumers ultimately depends on market behaviour and individual marketers’ decisions.

The post Marketers retain high petrol prices despite Dangote Refinery reduction appeared first on Vanguard News.