The Independent Petroleum Marketers Association of Nigeria (IPMAN), said the price of Premium Motor Spirit (PMS), popularly called petrol, will drop to N935 per litre today in view of the Dangote Refinery’s new arrangement.
IPMAN said the new price was necessitated by the reduction in Dangote Refinery’s fuel ex-depot price and uniform arrangement, which would enable marketers to sell at N935 in their outlets nationwide.
IPMAN National President, Maigandi Garima, who made this known on Sunday during an interview in Abuja, lauded the Dangote refinery for the development.
Dangote refinery recently announced a significant reduction in fuel price by 7.27 per cent from N970 per litre to N899.50 per litre at its loading gantry and provided generous credit terms to marketers.
In the bid to ensure that the price reduction gets to the end consumers, it signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935.
The price reduction which is designed by Dangote refinery to alleviate transport cost during the festive period and beyond, has already commenced in Lagos, and will be offered nationwide from Monday.
He stated, “Dangote Refinery has brought another new arrangement of loading and pricing by which marketers would pay a fixed ex-depot price of N899.50k. The refinery is running a programme whereby it wants the fuel consumption across the country to be at the same rate. We are expecting the new arrangement to kick-start on Monday. We have been loading from the Dangote refinery and the refinery is saving us in this festive period.’’
The IPMAN President said previously it was loading at N970 per litre at Dangote Refinery, but based on the arrangement and promise from Dangote, by Monday fuel price would drop to N935.
Mr Garima said the downstream sector competition being witnessed currently was expected by marketers since due to deregulation, adding that it would see the price of fuel dropping continuously.
“That is the reason why we have been asking the government to allow private sectors to participate in the refinery business. Very soon more refineries are coming up and the country will see a lot of price reduction in the downstream sector,’’ he said.
He recalled that during the 2023 yuletide, per litre of fuel was sold at N2, 000 in the northern and eastern part of the country because fuel was being imported at that period.
He added that the highest price of which fuel could be sold there currently is N1, 100 because refineries were running in the country.
“By the time Warri and Kaduna resume production, one can buy products at cheaper rates and it is good for the economy,” he added.
He however commended the naira for crude swap deal, adding that it was a good development for the growth of the economy.
By the time Warri and Kaduna resume production, one can buy products at cheaper rates, and it is good for the economy.
NNPC also slashes price
Following the cue the Nigerian National Petroleum Company Limited (NNPCL) also slashed petrol price to below ₦1,000 per litre.
A statement signed by the Petroleum Products Retail Outlets Owners Association of Nigeria’s National Public Relations Officer, Dr Joseph Obele on Saturday, said the move was a significant step in response to the competitive impact of deregulation in the downstream sector.
The statement reads in part “The price reduction by NNPCL is seen as a response to the competitive impact of deregulation, which has led to increased competition in the downstream sector. The move is expected to spark a price war among oil marketers, ultimately benefiting consumers.
“The company recently reduced the ex-depot price of Premium Motor Spirit (PMS) from ₦1,020 to ₦899 per litre, a move that has been commended by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN)
“The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has hailed the Nigerian National Petroleum Company Limited (NNPCL) for responding to the call for affordable Premium Motor Spirit (PMS) prices.”
Citing a document released by the NNPC commercial department the association listed the reduction,which is based on regional pricing scheme as follows:
Calabar: ₦ 970.0
Lagos: ₦899.0
Warri: ₦ 970.0
Oghara: ₦970.0
Port Harcourt: ₦970.0
