Fuel importers face N75bn monthly loss after Dangote price cut.
Importers of Premium Motor Spirit (petrol) may lose an average of N2.5bn daily and N75bn monthly following the latest PMS price reduction announced by the Dangote Petroleum Refinery.
Findings by The Punch revealed that the average landing cost of petrol as released by industry players is over N100 higher than the new ex-depot price of petrol at the Dangote refinery.
The Dangote refinery announced a reduction in the ex-depot (gantry) price of petrol by N65, from N890 to N825 per litre, effective from Wednesday, February 27. This was the second price reduction in the new year, and the third one in a space of two months.
It disclosed that Nigerians will now buy at new prices from its partners nationwide, including MRS, Heyden, and Ardova.
“Nigerians will be able to purchase the high-quality Dangote petrol at the following prices in all our partners’ retail outlets. For MRS Holdings stations, it will sell for N860 per litre in Lagos, N870 per litre in the South-West, N880 per litre in the North, and N890 per litre in the South-South and South-East, respectively.
“The same product will also be available at the following prices in Ardova Petroleum and Heyden stations: N865 per litre in Lagos, N875 per litre in the South-West, N885 per litre in the North, and N895 per litre in the South-South and South-East,” the company said.
According to the Major Energies Marketers Association of Nigeria, the landing cost of petrol as of last week was N927 per litre. This is N102 above the N825 ex-depot price of PMS at the Dangote refinery.
Recently, the Nigerian Midstream and Downstream Petroleum Regulatory Authority said Nigeria’s daily PMS consumption was around 50 million litres per day.
The NMDPRA said more than half of the 50 million litres are being sourced from foreign countries because local refineries cannot supply up to 50 per cent of it.
Source: PUNCHNG
