Petroleum marketers and retailers have expressed optimism that Dangote Refinery’s recent reduction in the ex-depot price of Premium Motor Spirit (PMS) will lead to lower retail prices at filling stations across Nigeria. On Monday, the Lekki-based refinery, with a capacity of 650,000 barrels per day, introduced a N10 refund for PMS purchased at N835 per litre, effectively bringing the ex-depot price to N825 per litre.
The National Secretary of the Independent Petroleum Products Marketers Association of Nigeria (IPMAN), James Tor, and the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, confirmed the refund in separate interviews. This marks the third price reduction by Dangote Refinery since April 9, when the Federal Government, through the Nigerian National Petroleum Company Limited (NNPCL), renewed its naira-for-crude deal with the $20 billion facility. Previous cuts saw the ex-depot price drop from N880 to N865, then to N835, and now to N825 per litre.
The price adjustment is expected to prompt partnering filling stations, including MRS, AP (Ardova), Heyden, Optima Energy, Hyde, and Techno Oil, to revise their pump prices in the coming days. As of Monday evening, MRS and other partnered stations were selling petrol at N910 per litre. A staff member at an MRS outlet along Kubwa Expressway in Abuja revealed plans to lower the pump price to N900 per litre by Wednesday or Thursday. An NNPCL source also hinted at a potential price relaxation to around N880 or N900 per litre soon.
James Tor of IPMAN noted that the deregulated downstream petroleum sector allows market forces to drive prices, meaning reductions by Dangote Refinery will likely ripple across the market. He praised the collaboration between NNPCL’s new management, led by Bayo Ojulari, and Dangote Group, stating it would bring ility to the petrol market. “It means the industry will have a sense of direction,” Tor said.
However, PETROAN’s Billy Gillis-Harry raised concerns about the frequent price fluctuations, arguing that constant ces disrupt industry ility. While acknowledging the potential for lower pump prices, he described the reductions as “artificial” and suggested they might be a strategy to capture market share. “We should allow market forces to determine prices,” he urged, while welcoming the partnership between Dangote and NNPCL for its potential to improve energy access.
The price cuts coincide with a decline in global crude oil prices, with Brent and WTI crude blends falling to $64.72 and $61.72, respectively, on Tuesday morning. This development, coupled with Dangote Refinery’s proactive pricing strategy, could ease the financial burden on Nigerian consumers, particularly as transportation and living costs remain high.
As the refinery continues to influence the downstream sector, Nigerians await the anticipated pump price reductions, hoping for sustained relief at the fuel pumps.
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Im not convinced lower petrol prices will last. Lets enjoy it while we can, but stay realistic. Things can ce quickly!
Interesting move by Dangote Refinery! Do you think this will actually lead to lower petrol prices across the country? Im skeptical.
I think the price cut is just a temporary fix. We need long-term solutions for le petrol prices. What do you guys think?
Im not convinced this price cut will last long. Weve seen this before – lets not get our hopes up too high.
Im not convinced lower petrol prices will last long. Lets enjoy it while it lasts, but stay realistic.
Im not convinced lower petrol prices are guaranteed just because of a price cut at Dangote Refinery. Lets wait and see.
I wonder if this price cut will actually make a difference in petrol prices or if its just a temporary relief. What do you guys think?
Wow, this price cut could really shake up the petrol market! Do you think it will lead to long-term savings for consumers or just a temporary relief?