Feb 28, 2025, 5:40 PM
Dangote Refinery Dangles Cheap Petrol Prices to Consumers in Monopoly Bid
It is easy for Dangote refinery to drive petrol prices down against the operations of other marketers as long as it works in its favour.
Dangote Refinery on Monopoly of the Petroleum Industry.
Port Harcourt Refinery Reopens Without Subsidy
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.
Next
Summary
Mon Mar 24 2025
The explosion and a suspected attack on the Trans-Niger Pipeline, TNP, President Bola Tinubu has warranted a state of emergency in Rivers State. President Bola Tinubu made the announcement Tuesday where he also suspended the current administration as well as, instated a new leader Vice Admiral Ibokette Ibas for six months to run the affairs of the state.
A Nigerian presidential aide placed a verdict on a corp member Rita saying that she should face capital punishment for calling the president terrible. Rita was summoned by her NYSC LGA and she is getting assistance from Omoyele Sowore and his lawyers.
