The Dangote Refinery’s decision to reduce the gantry price of Premium Motor Spirit, also known as Petrol, has triggered significant losses for fuel importers, depot owners, and retail marketers.

According to journalists, petrol importers are on the verge of losing as much as N102.48bn monthly after the Dangote refinery reduced its gantry price from N828 per litre to N699.

At the same time, the refinery is also projected to lose about N91bn in a month as a direct consequence of the price cut, underscoring the intensity of the competition currently reshaping Nigeria’s downstream oil market.

The development has exposed deep fault lines in the deregulated petroleum market, with winners and losers emerging almost simultaneously.

The reduction in petrol gantry price came just days after the refinery assured Nigerians of sufficient fuel supply to avoid queues at filling stations during the festive period. The company also announced a 10-day credit facility for marketers, stating that the new price regime took effect from December 12.

Many Nigerians have welcomed the price reduction as a major relief, especially during the Yuletide season, fuel marketers running filling stations across the country say they are counting heavy losses, as they would be forced to sell existing stocks purchased at higher prices below cost.

Read Also: Dangote Refinery Set To Begin Selling Petrol at N739 Per Litre

Recall that President of the Dangote Group, Aliko Dangote, at a press briefing pledged to enforce the new pricing regime, insisting that filling stations must sell petrol at N739 per litre nationwide from Tuesday. He disclosed that MRS filling stations would begin implementation immediately, with other partner stations expected to follow.

Source: Punch