Petrol Latest prices, importers in Nigeria and Market Trends | Today 27 February 2025

Petrol importers in Nigeria have indeed voiced worries about the Dangote Refinery’s ongoing price reductions. 

Their main concern is that the refinery’s strategy of consistently lowering ex-depot prices—for instance, the most recent drop from N890 to N825 per litre as of today, February 27, 2025—is putting pressure on their business. 

They argue that this forces dealers to sell imported petrol at a loss, since consumers naturally gravitate toward the cheapest available options, like fuel from Dangote or its partners such as MRS and Ardova. 

The importers point out that the landing cost of imported petrol, which was around N927 per litre last week, is now higher than Dangote’s ex-depot price. 

This squeezes their profit margins, making importation less viable. Some have even suggested that Dangote’s approach might be a deliberate move to edge them out of the market, especially as the refinery ramps up its capacity and holds significant reserves—over 500 million litres by some accounts—capable of meeting local demand for days.

While this benefits Nigerians with lower pump prices (now hovering between N860 and N895 depending on the region), it’s a tough blow for importers who’ve long relied on the country’s dependence on foreign fuel. 

On the flip side, groups like the Independent Petroleum Marketers Association of Nigeria (IPMAN) have welcomed the price cuts, seeing it as a win for local refining and a chance to reduce reliance on imports. 

It’s a classic market shake-up—Dangote’s scale and pricing power are forcing everyone to adapt, and the importers are feeling the heat.

As of today, February 27, 2025, the global oil market is navigating a complex landscape shaped by supply dynamics, geopolitical tensions, and shifting demand patterns. 

Crude oil prices have been under pressure recently, with Brent crude hovering around $78 per barrel earlier this week, down from over $81 last week, reflecting a broader bearish sentiment. 

This decline is driven by several key trends.

First, supply is looking robust. U.S. production continues to surge, alongside steady output from non-OPEC countries, while Russian supply has proven resilient despite sanctions. 

This has raised the prospect of surpluses, which could further depress prices if demand doesn’t keep pace. OPEC+ is also in focus, with speculation that the group might delay planned output increases due to weakening global demand outlooks, particularly as trade wars—like those hinted at by U.S. policy shifts under President Trump—threaten economic growth.

Geopolitically, things are heating up. New sanctions on Iran are seen as a wildcard that could tighten supply if enforced aggressively, though their immediate impact is uncertain.

Trump’s vow to end oil concessions to Venezuela adds another layer of complexity, potentially disrupting flows from that region. 

Meanwhile, conflicts in the Middle East and disruptions like Red Sea shipping attacks have increased costs for some oil routes, but so far, these haven’t offset the downward pressure from ample supply.

Demand-wise, the picture is mixed. China’s oil appetite remains a question mark, with doubts about its economic recovery tempering expectations. India, however, is tipped for rising demand, which could provide some balance. Still, the global shift toward renewables and gas is starting to chip away at long-term oil reliance in some markets, though this is more of a slow burn than an immediate jolt.

In Nigeria specifically, the Dangote Refinery’s growing influence is reshaping local and regional trends. Its latest price cut—dropping petrol from N890 to N825 per litre ex-depot as of today—reflects falling global crude prices and is squeezing importers, who are struggling with landing costs around N927 per litre. 

This could accelerate Nigeria’s push toward self-sufficiency, potentially trimming its import bill (historically $20-30 billion annually) and even positioning it as an exporter, though crude supply constraints to the refinery remain a hurdle.

Overall, the oil market’s near-term trajectory looks volatile. Prices could face more downside if surpluses materialize, but geopolitical shocks or OPEC+ moves could flip the script. 

Keep an eye on U.S. inventories and China’s economic data—they’ll be big tells in the coming weeks.