Latest news with #N860
Business Insider
08-08-2025
- Business
- Business Insider
Dangote breaks from competitive pricing, introducing a higher petrol price
This 3.66% price increase has reignited concerns about a potential nationwide surge in pump prices in the coming days. The increased rate, recorded by industry monitoring portal petroleumpriceng, as seen in the Punch, took effect on Thursday when the 650,000-barrels-per-day facility commenced loading operations. The temporary halt last week created uncertainty in Nigeria's downstream petroleum sector, causing price volatility and disrupting supply chains. An internal document marked "Important Update on DPRP Collection Account for PMS" told marketers to halt all payments to the refinery's gantry account, causing an unanticipated pause in fuel loading. "Please be advised that, effective immediately, all payments to the DPRP collection account for PMS gantry should be placed on hold," the advisory stated, perplexing many in the business until operations resumed this week. While the Dangote Group has not officially addressed the price increase, industry insiders think it is due to global market developments. The refinery is thought to get approximately half of its crude feedstock from the United States, making it vulnerable to global oil price volatility, which might be driving the increase in ex-depot gasoline prices. Recent competition between Dangote and marketers Until recently, the Dangote refinery drove competitive pricing in Nigeria's downstream industry, lowering petroleum costs and compelling competitors to match its offerings. However, a couple of weeks back, Dangote's tactic fell back on him as importers such as Aiteo and Menj offered depot rates as low as N815, causing price swings throughout the market. Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), verified the trend. 'Depot owners are dropping their petrol prices. Some of them are selling N815, some are selling N817, while Dangote is selling N820. NNPC is still selling at N825; it has not dropped its prices yet,' he said. Additionally, the Dangote Refinery faced more competition as certain filling stations supplied petrol for less than N860 per litre, despite Dangote-linked marketers such as MRS and Heyden maintaining pump rates ranging from N865 to N875 across Lagos and Ogun states. Fuel import surge The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed a huge increase in petroleum imports, which adds to the complexity. According to figures filed to the Federation Accounts Allocation Committee (FAAC) for June 2025, imports accounted for 71.38% of Nigeria's daily petroleum consumption in May and June.
Business Insider
08-08-2025
- Business
- Business Insider
Despite intensifying competition, Dangote Refinery increases petrol price
This 3.66% price increase has reignited concerns about a potential nationwide surge in pump prices in the coming days. The increased rate, recorded by industry monitoring portal petroleumpriceng, as seen in the Punch, took effect on Thursday when the 650,000-barrels-per-day facility commenced loading operations. The temporary halt last week created uncertainty in Nigeria's downstream petroleum sector, causing price volatility and disrupting supply chains. An internal document marked "Important Update on DPRP Collection Account for PMS" told marketers to halt all payments to the refinery's gantry account, causing an unanticipated pause in fuel loading. "Please be advised that, effective immediately, all payments to the DPRP collection account for PMS gantry should be placed on hold," the advisory stated, perplexing many in the business until operations resumed this week. While the Dangote Group has not officially addressed the price increase, industry insiders think it is due to global market developments. The refinery is thought to get approximately half of its crude feedstock from the United States, making it vulnerable to global oil price volatility, which might be driving the increase in ex-depot gasoline prices. Recent competition between Dangote and marketers Until recently, the Dangote refinery drove competitive pricing in Nigeria's downstream industry, lowering petroleum costs and compelling competitors to match its offerings. However, a couple of weeks back, Dangote's tactic fell back on him as importers such as Aiteo and Menj offered depot rates as low as N815, causing price swings throughout the market. Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), verified the trend. 'Depot owners are dropping their petrol prices. Some of them are selling N815, some are selling N817, while Dangote is selling N820. NNPC is still selling at N825; it has not dropped its prices yet,' he said. Additionally, the Dangote Refinery faced more competition as certain filling stations supplied petrol for less than N860 per litre, despite Dangote-linked marketers such as MRS and Heyden maintaining pump rates ranging from N865 to N875 across Lagos and Ogun states. Fuel import surge The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed a huge increase in petroleum imports, which adds to the complexity. According to figures filed to the Federation Accounts Allocation Committee (FAAC) for June 2025, imports accounted for 71.38% of Nigeria's daily petroleum consumption in May and June.
Business Insider
30-07-2025
- Business
- Business Insider
Importers undercut Africa's richest man as fuel prices in Nigeria get more competitive
Nigeria's fuel market is entering another era of fierce competition, with independent fuel importers undercutting the Dangote Refinery in an unexpected twist. Independent fuel importers in Nigeria have significantly lowered prices, intensifying competition in the market. The reduction in depot rates, spearheaded by companies like Aiteo and Menj, has challenged prices set by Dangote Refinery. Chinedu Ukadike emphasized the importance of market liberalization and opposed banning petroleum imports. This time, it is not the refinery that is driving the market, but rather the marketers who are lowering prices. According to recent investigations by The Punch, numerous filling stations are now selling fuel for less than N860 per litre, which is lower than prices charged by Dangote-linked marketers such as MRS, Heyden, and others in Lagos and Ogun States, which range from N865 to N875. SGR, a filling station in Ogun State, reportedly reduced its pump price to N847 per litre on Tuesday. The true game changer, however, is in the ex-depot market. Importers like Aiteo and Menj have reduced their depot rates to N815 per litre, which is lower than the N820 presently offered by the Dangote refinery. Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, stated that the importers continue to evaluate lower prices. 'Depot owners are dropping their petrol prices. Some of them are selling N815, some are selling N817, while Dangote is selling N820. NNPC is still selling at N825; it has not dropped its prices yet,' he stated. He also touched on the subject of fuel importation, suggesting that President Bola Tinubu should not to adhere to demands to outlaw the import of petroleum, calling this the beauty of market liberalization. 'This is the beauty of the liberalization of the market. That is why we opined that the President should not ban anybody from importing petroleum products,' he stated. Nobody should be stopped from bringing in petroleum products. That is the beauty of opening up the market. Implementation and local refining will checkmate unfair pricing. As an indigenous country, you must refine to ensure that you have the best price,' he added. The decision to cut fuel prices came just a few days after Dangote urged the country's current administration to ban the importation of fuel. Speaking at the Global Commodity Insights Conference in Abuja, presented by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in collaboration with S&P Global Insights, Dangote said unequivocally that petroleum products should be listed on the list of prohibited imports. 'The Nigeria First policy announced by His Excellency, President Bola Tinubu, should apply to the petroleum product sector and all other sectors,' the Nigerian billionaire stated. Fuel price wars in Nigeria after the Israel-Iran conflict Earlier this month, the Dangote Petroleum Refinery initiated the price competition by trimming its gantry price of Premium Motor Spirit (PMS) from N880 to N840 per litre, a 4.5% reduction aimed at providing relief to Nigerians grappling with high fuel costs. Not long after, the refinery again slashed pricing, this time to N820. These measures were considered noteworthy, especially given the refinery's past price rises, which were partially motivated by geopolitical concerns in the Middle East, notably the war between Israel and Iran. At the time, Dangote, along with NNPC and other marketers, retaliated by hiking petroleum prices. However, the refinery quickly flipped, lowering pricing to match the reality of the global oil supply chain. This is hardly the first price war initiated in the sector. Late last year and earlier this year, the Dangote Refinery and the NNPC engaged in a fierce battle for the larger shares of the fuel market.
