Checkout Magazine has learnt that the Dangote oil refinery will lose up to N32.5bn from 500 million litres stock of premium motor spirit following the recent price cut.
A few days before the refinery announced a price slash, the President of the Dangote Group,Alhaji Aliko Dangote, had told newsmen that the refinery had over 500 million litres of petrol in its tanks.
This revelation was made at a period the refinery was selling a litre of petrol at N890.
Our correspondent reports that the 500 million litres of petrol will amount to N445bn if sold at the
old rate of N890 per litre.
In a statement last month, the Dangote refinery announced a reduction in the ex-depot price of petrol by N65, from N890 to N825 per litre, effective from February 27, being the second price reduction in the new year.
“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 marks the second price reduction of PMS in February 2025, following a previous decrease of N60 earlier in the month.
“Additionally, in December 2024, during the yuletide period, the refinery reduced the price of PMS by N70.50, from N970 to N899.50 per litre, as part of its commitment to easing the cost of living and providing relief to Nigerians during the holiday season.
“This reduction has positively impacted the overall cost of living, benefiting various sectors of the economy, and has also ensured that Nigerians did not experience the perennial fuel scarcity and price hikes typically associated with the yuletide season,” the company stated.
It was calculated that selling the 500 million litres of PMS at N825 per litre following the reduction will lower the company’s expected income from the stock to N412.5bn, probably ridding it of its margin.
This means the company must have sold the 500 million litres at N32.5bn below its original value of N445bn.
However, experts have suggested that the crash in crude prices and the marginal strength the naira gained lately against the dollar would help the refinery recover its losses.
