Dangote Refinery's Petrol Price Reduction Forces Filling Stations To Shut Down Operations

Several fuel stations in Abuja have halted operations following the Dangote Refinery’s decision to slash the ex-depot price of Premium Motor Spirit (PMS) to ₦835 per litre. This development, which began affecting retailers from Tuesday, April 16, 2025, has significantly disrupted sales activities for independent marketers across the capital city.

According to LMSINT MEDIA, filling stations along major routes like the Kubwa Expressway, including MRS outlets, have remained shut for over five days due to the pricing changes.

Marketers Struggle with Old Stock Losses

An employee at one of the MRS filling stations, who requested anonymity, revealed that the recent price adjustment by Dangote Refinery has created substantial losses for retailers with older, higher-priced fuel inventory.

“The fuel in stock was purchased before Dangote reduced prices. Selling at the new rate would mean heavy losses for us,” he said.

Another staff member clarified that the station’s temporary shutdown was also due to maintenance activities and that the outlet is expected to resume operations on Tuesday, dispensing petrol at ₦910 per litre.

Disruption Spreads to Other Retailers

Other petrol marketing partners of the refinery—including Ardova, AP, and Optima—have reportedly adjusted their pump prices to between ₦910 and ₦920 per litre as of Monday, April 21, 2025, in Abuja and surrounding areas.

Industry Leaders Raise Concerns Over Price Instability

In a conversation with LMSINT MEDIA, Billy Gillis-Harry, President of the Petroleum Retailers Outlets Owners Association of Nigeria (PROOAN), criticized the frequent price changes, stating that such volatility destabilizes the petroleum market and erodes retailers’ financial viability.

“Fluctuations in petrol prices, especially without proper communication or justification, negatively affect businesses and consumer confidence,” he explained.

He reiterated his earlier advocacy for a six-month fuel price stability framework to mitigate uncertainty in the downstream oil sector.

Older Stocks, Higher Losses

Backing Gillis-Harry’s stance, Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), previously warned that marketers with existing fuel stock could face billions of naira in losses due to Dangote’s back-to-back price reductions.

Just last week, the $20 billion Dangote Refinery made its second price cut, reducing the pump price from ₦865 to ₦835 per litre—a total drop of ₦45 within a short span.

NNPC Reacts as Global Oil Prices Fall

In response, the Nigerian National Petroleum Company Limited (NNPC) also slashed its retail price in Abuja to ₦935 per litre, adjusting to the competitive pricing triggered by Dangote’s move.

This change follows a decline in global crude oil prices, currently hovering around $66 per barrel, and aligns with the federal government’s strategy to sustain the naira-for-crude deal with domestic refiners.

At present, fuel prices across Nigeria range between ₦890 and ₦950 per litre, depending on the region.

Read: How Dangote Refinery Is Reshaping Nigeria’s Oil Industry

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