Despite a significant cut in ex-depot petrol prices by Dangote Petroleum Refinery, fuel marketers across Nigeria have largely retained high pump prices. The refinery had lowered its ex-depot price from ₦880 to ₦840 per litre in an effort to stimulate downstream market relief and ease consumer fuel costs. However, the anticipated retail adjustment has yet to materialize at many filling stations.
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Fuel marketers cite the need to exhaust older inventories purchased at higher rates as the primary reason for maintaining current prices. This strategy has created a temporary price disconnect between wholesale and retail levels, leaving end users unaffected by Dangote’s move.
The situation underscores the broader impact of Nigeria’s deregulated fuel market, where pricing decisions are now fully determined by market forces rather than regulatory mandates. As a result, even with increased local refining capacity and supply, the benefits are not immediately visible to consumers.
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The delay in retail price adjustments may also reflect cautious financial planning by marketers seeking to avoid operational losses amid fluctuating supply chain costs. Until current inventories are sold and newer stock is acquired at reduced rates, pump prices are expected to remain elevated.
This divergence between wholesale price cuts and retail price stability signals ongoing complexities within Nigeria’s downstream petroleum sector, even as domestic refining capacity expands and global oil prices shift.
