The Dangote oil refinery is expected to incur a loss of approximately ₦32.5 billion on its 500 million litres of petrol stock due to a recent reduction in price.
Prior to the adjustment, Aliko Dangote, the President of Dangote Group, informed journalists that the refinery had stored over 500 million litres of PMS, which was being sold at ₦890 per litre at the time.
However, on February 27, the refinery announced a ₦65 reduction in the ex-depot price, bringing it down to ₦825 per litre. This price cut, the second in February, reduced the stock’s total value to ₦412.5 billion, effectively wiping out ₦32.5 billion in potential revenue.
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In a statement last month, the company highlighted its consistent efforts to lower fuel prices. “It is important to note that Dangote Petroleum Refinery has consistently lowered the prices of petrol and other refined petroleum products to the benefit of Nigerians. This marks the second price reduction of PMS in February 2025, following a previous decrease of ₦60 earlier in the month,” the statement read.
The company also recalled a ₦70.50 reduction in December 2024, from ₦970 to ₦899.50 per litre, as part of its efforts to ease the cost of living and prevent the fuel shortages often seen during the festive season.
Despite the loss in revenue, experts believe the refinery could recover due to falling crude oil prices and the naira’s slight appreciation against the dollar.
Meanwhile, fuel importers and marketers have expressed concerns over the continuous price cuts, saying they are incurring heavy losses as a result.