The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that the price of Premium Motor Spirit (PMS), commonly known as petrol, is expected to drop to N935 per litre by Monday. This reduction is attributed to new measures introduced by the Dangote Refinery, including a cut in the fuel ex-depot price and the implementation of a uniform pricing scheme nationwide.
Dangote Refinery Slashes Ex-Depot Price
POLITICS NIGERIA reports that on Thursday, Dangote Refinery reduced the ex-depot price of petrol to N899.50 per litre to ease the financial burden on Nigerians ahead of the holiday season.
Speaking on the development, Alhaji Maigandi Garima, IPMAN National President, revealed that the Dangote Refinery’s new pricing arrangement ensures consistency in fuel prices across the country.
“Dangote refinery has introduced a fixed ex-depot price of N899.50 per litre,” Garima stated in an interview with the News Agency of Nigeria (NAN). “The refinery is implementing a system to ensure uniform fuel pricing nationwide, which is expected to take effect by Monday. We have been loading from the Dangote refinery, and this initiative is providing significant relief during the festive period.”
Competition Driving Down Fuel Prices
Garima noted that the current deregulation of Nigeria’s petroleum sector has increased private-sector participation, fostering competition that is driving fuel prices down. He highlighted the stark contrast to the 2023 yuletide season, when petrol prices surged to N2,000 per litre in some parts of the country due to scarcity.
“With the commencement of operations at the Dangote Refinery and other private refineries, fuel prices have dropped significantly. Currently, the highest price in the Northern and Eastern regions is N1,100 per litre,” Garima explained.
NNPC’s Role in Price Reduction
The Nigerian National Petroleum Company (NNPC) Ltd. also contributed to the price reduction by slashing its ex-depot price from N1,020 to N899 per litre, according to Garima. This move reflects the positive impact of deregulation and heightened competition in the industry, which is expected to lead to even further price reductions.
Future Outlook
Garima expressed optimism about the future of Nigeria’s downstream oil sector. He noted that when other major refineries, such as those in Warri and Kaduna, resume full production, Nigerians can expect even cheaper petrol prices.
“These developments are good for the economy. Increased refinery operations will ensure stability in fuel supply and pricing, benefiting both consumers and the industry,” Garima concluded.
Bottom Line
The Dangote Refinery’s pricing reforms, coupled with deregulation and increased competition in Nigeria’s oil sector, are ushering in a new era of affordability and stability for fuel prices. This shift provides a much-needed economic boost as the country heads into the holiday season.
