Adewale Sanyaolu Dangote Refinery’s N699/litre petrol price cut from N828 has hit fuel marketers’ wallets hard, as they report a profit slump of over N40 billion.
Already, many Nigerians have turned to social media to call out fuel marketers, accusing them of keeping petrol prices inflated despite the recent price cut by Dangote.
They told the marketers to crash their prices as well, rather than lamenting and feigning helplessness.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Chukwudi Ukadike, in a telephone interview with Daily Sun, lamented the impact of mounting losses on fuel marketers.
Ukadike explained that the decision by Dangote Refinery to reduce petrol prices at a time when Nigerians are preparing for the yuletide season has both positive and negative implications.
He expressed concern that marketers who purchased petrol at prices ranging from N768 to N850 per litre before the refinery’s price cut will now have to contend with losses and “bite their wounds.”
“Many marketers who loaded products last week at costs between N768 and N850, depending on where the products were sourced, are now facing serious financial challenges,” he said. Ukadike added that the downstream petroleum market is prone to volatility and price shocks, particularly with the entry of Dangote Refinery into the supply chain.
“For some players who have just imported petrol, this is certainly a difficult period because selling at N699 per litre is not feasible. This market responds quickly to price changes. Once filling stations start adjusting prices downwards, those with higher-priced stock will be forced to reduce their prices too, or they will have to hold their stock because no one will buy from them,” he explained.
Addressing allegations that marketers are exploiting consumers, Ukadike disagreed, stressing that it is simply a reflection of market dynamics.
“The market operates on demand and supply. Filling stations that are slow to respond to price reductions do so to minimize their losses,” he said. “All they are doing is keeping the loss figure as low as possible so that when they buy fresh products, they can balance their losses. Nigerians should understand that marketers borrow from banks and risk being driven out of business if they don’t manage their books carefully.”
The latest reduction by Dangote Refinery comes barely a week after its Chairman, Aliko Dangote, reaffirmed his commitment to keeping domestic fuel prices reasonable and competitive despite global volatility and persistent smuggling along Nigeria’s borders.
Speaking after a closed-door meeting with President Bola Tinubu on December 6, Dangote said prices would continue to fall as the refinery ramps up output and competes directly with imported products.
Dangote Petroleum Refinery recently confirmed its capacity to meet Nigeria’s domestic petrol requirements, pledging 1.5 billion litres of Premium Motor Spirit (PMS) per month, equivalent to 50 million litres per day, starting in December 2025. The supply is set to increase to 1.7 billion litres per month (57 million litres daily) from February 2026, according to a letter to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
In the letter, dated 30th November 2025 and signed by CEO David Bird, Dangote Refinery requested NMDPRA support to host officials onsite from 1st December to validate and publicly publish daily production and stock volumes. The move aims to ensure full transparency and strengthen public confidence in domestic fuel availability.
The letter also called for unhindered clearance of crude, feedstocks, and blending components, as well as smooth lifting of petroleum products by vessel. Dangote Refinery noted that delays in vessel clearance have continued to affect operations, increase costs, and impact consumers. “We are committed to supplying Nigeria’s domestic PMS requirements. Dangote Refinery is ready and able to supply 1.5 billion litres per month (50 million litres/day) in December and January, followed by 1.7 billion litres per month (57 million litres/day) from February 2026 onwards,” the letter stated.
