The Dangote Petroleum Refinery has announced a reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, from N990 to N970 per litre. This is the price marketers will pay when purchasing directly from the refinery.
In a statement released on Sunday, the Group Chief Branding and Communications Officer of the Dangote Group, Anthony Chiejina, explained that the price reduction is a gesture of appreciation to Nigerians as the year draws to a close.
“As the year comes to an end, this is our way of appreciating the good people of Nigeria for their unwavering support in making the refinery a dream come true. In addition, this is to thank the government for their support as this will complement the measures put in place to encourage domestic enterprise for our collective well-being,” Chiejina said.
He reassured Nigerians of the refinery’s commitment to producing high-quality, environmentally sustainable fuel and promised that Dangote would ramp up production to meet and exceed domestic demand. “We are determined to keep ramping up production to meet and surpass our domestic fuel consumption, thus dispelling any fear of a shortfall in supply,” the statement concluded.
Competition Drives Down Prices
The reduction comes amid reports of falling petrol prices across the country due to increased competition following the deregulation of the downstream oil sector. Independent and major marketers have noted that prices are gradually dropping in several regions.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted the impact of a new agreement between IPMAN and Dangote Refinery. He stated that the deal is already contributing to lower prices.
“By just the announcement that IPMAN and Dangote have met and are ready to transact business, the prices of products have crashed. You would have noticed the drop in prices by N10, N15, or so, and this is due to competition. Independent marketers are no longer buying from middlemen. We are going to be buying directly from the producer,” Ukadike explained.
He added, “I also want to tell you that before the end of this year, the price will not be as high as what you see now. You can see how our meeting with Dangote has significantly removed about N10 from the prices of refined petroleum products.”
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Industry Experts Confirm Price Drop
An unnamed major oil marketer also confirmed that deregulation and competition are leading to reduced pump prices. “People are not noticing that prices are going down, primarily because there are no big announcements. Deregulation is in full swing and competition is the order of the day,” the marketer stated.
When asked about pump prices still above N1,000 per litre in some filling stations, the marketer clarified that prices vary and fluctuate due to market conditions. “Last week it was N1,080 in some filling stations. You may not see N900; that is below cost. Just stop expecting a permanent fixed price. It can come down and it can go up.”
The price cut by Dangote Refinery is seen as a positive development that aligns with market forces and increased production capacity. With agreements in place and competition intensifying, experts and stakeholders are optimistic about further price reductions before the end of the year.