Despite the recent decision by Dangote Refinery to reduce its wholesale petrol price, drivers may not experience a drop in fuel costs just yet. This is because fuel stations are still working through existing stock purchased at the previous higher price.
In an interview on Arise TV on Saturday, Billy Gillis-Harris, the president of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), explained that while the refinery’s price cut—reducing petrol from ₦950 to ₦890 per litre—is a positive development, it won’t immediately reflect at retail outlets.
“We can’t lower prices right away because we’re still selling the fuel we bought at the old price,” Gillis-Harris noted. “We’ve already purchased different types of products that are still in our stations, and they were bought at the previous rate.”
He further emphasized that fueling stations risk losing money if they sell the remaining stock at the new lower price, as doing so would lead to a ₦60 loss per litre. “The moment we incur a loss like that, we’re out of business, so we have to keep selling at the old price until our stock turns over,” he explained.
However, Gillis-Harris reassured that once retailers begin purchasing petrol at the reduced price from Dangote, they should reflect the new pricing at their outlets. “We advocate that once we start purchasing fuel at the new price from Dangote, that price should be passed on to the consumers at our retail stations,” he stated.
PETROAN is also working to coordinate efforts with Dangote Refinery and MRS, a major fuel retailer, to ensure a more uniform pricing structure across the country. “This partnership will help make sure that fuel is available at a consistent price in all corners of Nigeria,” Gillis-Harris added.
As Nigerian refineries ramp up production, the country is becoming less reliant on fuel imports, which will contribute to more stable fuel availability across the nation. PETROAN also shared that its members have started receiving supplies from local refineries in Port Harcourt and Warri.
