…competitive pricing protects consumers from import driven increasesBy Udeme AkpanDangote Petroleum Refinery & Petrochemicals continues to shield the Nigerian market from external price shocks, maintaining stable domestic fuel prices within a commercially acceptable range despite rising international gasoline prices, higher freight rates and tightening global supply conditions that are increasing costs for fuel importers across West Africa, according to the latest market intelligence from S&P Global Commodity Insights.
According to the latest market intelligence published by S&P Global Commodity Insights, importers supplying the Nigerian market are becoming increasingly concerned over the sharp rise in international gasoline prices, with traders attributing the pressure to higher global product values and rising shipping costs.
Significantly, market participants told S&P that gasoline prices in Nigeria are effectively being “capped by Dangote prices”, limiting the ability of importers to pass on higher international costs to the domestic market.
One trader noted that while Ghanaian specification gasoline currently commands higher premiums, Nigerian specification cargoes remain constrained because the Dangote Refinery has kept its coastal sales prices unchanged despite mounting international price pressures.
