For the second time in one month, Dangote refinery takes on its monopoly playbook and cuts fuel prices, this time from N890 to N825 per liter.
It announced this following a lawsuit against it by petroluem marketers on its monopoly intents.
The price cut by Dangote appears to be a disaster and has the potential to cut income for petrol importers. The effect of this is could be a long list of importers driven out of business for revenue loss.
The competition is fierce for importers who are now unable to sell the products imported from other countries with a margin. There are claims that importers could give way for Dangote Refinery to monopolise petroleum goods.
Dangote Refinery, Cheap Fuel Prices and Monopoly
Dangote is simply playing the monopoly card, and sadly, Nigerians are fooled by this. After driving out the importers from the PMS market, petrol prices will shoot up to the skies.
This startled petrol importers. To compete with Dangote refinery, they will have to adjust their prices.
There is no law against price reduction or an agreement between the importers and the Dangote refinery, as these entities operate differently. Instead, this intensifies rivalry while Dangote refinery continues to fight for monopoly, which the importers disagree with.
The Dangote Refinery might claim that it is for the benefit of the country and the people. However, it is perceived as a monopoly intent by others. On different occasions, the company said that;
“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 strategic price adjustment is intended to ease the financial burden on Nigerians, particularly in anticipation of the Ramadan season, while also supporting President Bola Ahmed Tinubu’s economic recovery initiatives.”
Current State of Fuel Suppy in Nigeria
Consumers are embracing the Dangote refinery’s petrol price cut. At least 40% of Nigeria’s domestic petrol supply currently comes from imports. However, Dangote Refinery has already taken over 60% of the market, according to an S&P Global report.
Dangote refinery opened for production in 2024. Some of its partners that offer petrol at the new prices include Heyden Petroleum, Ardova Plc and MRS.
