Following the recent fuel price reduction, there are predictions that Dangote refinery will suffer a huge debt of about N32.5 billion.
Recall that the refinery announced a price reduction in the ex-depot price of the PMS from N890 to N825 per litre, effective from 27 February.
The statement explained that the company is committed to making life easier for Nigerians, making reference to the price reduction of December 2024.
However, a few days before this announcement, the President of the Dangote Group, Aliko Dangote had revealed to newsmen that the refinery had over 500 million litres of petrol in its tanks.
It was estimated that selling the 500 million litres of PMS at N825 per litre following the reduction would lower the company’s expected income to N412.5bn. The interpretation is that the company must have sold 500 million litres at N32.5bn below its original value of N445bn.
Furthermore, sources confirmed that many filling stations had reduced their pump prices below N900 per litre after the private refinery’s announcement.
Additionally, fuel importers have lamented that Dangote refinery is gradually making importation less engaging with the continuous drop in prices of fuel and diesel.
According to reports, following the latest fuel price reduction by the Dangote refinery, importers may lose an average of N2.5bn daily and N75bn monthly. The heavy losses also didn’t exclude marketers with old stock.
Meanwhile, experts have implied that the recent decline in crude oil prices, along with the slight strengthening of the naira against the dollar, could assist the refinery in recouping its losses.
However, marketers have predicted that petrol prices may decrease to N800, as the current landing cost is now N783.66 per litre, according to the Major Energies Marketers Association of Nigeria.
