Petroleum importers and marketers across Nigeria are grappling with massive financial losses as an aggressive price war sparked by the Dangote Petroleum Refinery reshapes the downstream oil market. The refinery’s decision to slash its petrol gantry price from ₦828 per litre to ₦699 has forced competitors to follow suit, triggering sharp revenue declines. With national daily consumption estimated at 50 million litres and importers supplying about 26.48 million litres, the ₦129 price gap has translated into daily losses of roughly ₦3.41 billion and projected monthly losses of up to ₦102.48 billion.

Private depots, particularly in Lagos, have responded by cutting prices by as much as 14 percent, with some reducing rates from ₦828 to around ₦710 per litre. The sudden adjustment has weakened sales volumes, squeezed margins, and raised fears of stock overhang throughout the supply chain. Importers with undischarged cargoes still on Nigerian waterways are among the worst affected, holding fuel purchased at significantly higher prices with limited prospects for profitable sales.

Retail marketers are also counting heavy losses, having to sell existing stocks bought at about ₦828 per litre below cost to remain competitive. Industry estimates suggest collective losses among marketers could exceed ₦80 billion, with many describing the abrupt price drop as a major shock. Some stakeholders are now calling on the Dangote Refinery to offer compensation, such as discounts on future supplies, to help cushion what they describe as ongoing financial bleeding in the sector. Visit www.jocomms.com for more news details and follow us on all our social media platforms.