Independent petroleum marketers face huge losses following Dangote refinery’s latest test petrol price cut
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned that its members risk losing between N20 and N25 per litre of petrol, translating into billions of naira, due to Dangote Refinery’s recent N15 reduction in the retail price of premium motor spirit.
IPMAN spokesperson, Chinedu Ukadike, revealed this in an exclusive interview describing the situation as a “lose-win” scenario for independent marketers amid intense price competition in Nigeria’s downstream oil sector.
Ukadike explained that marketers who have already purchased petrol from Dangote Refinery or its affiliates will suffer a significant margin loss as prices adjust to the new lower rates.
“For us, the independent marketers, it is a lose-win situation. The loss is that those who have already gotten petrol products from Dangote Refinery or its partners will have to lose a N20 to N25 margin per litre and revert to the new price,” he stated.
He further suggested that Dangote Refinery’s motive behind the price reduction is to dominate the buying and distribution of petroleum products across Nigeria’s market.
