Nigerian petroleum products marketers have announced plans to further reduce the pump price of premium motor spirit (PMS) to about N750 per litre nationwide, as competition intensifies in the downstream oil sector.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) disclosed that its members are set to benefit from direct petrol supply from the Dangote Refinery at a projected rate of N699 per litre. IPMAN President, Abubakar Maigandi, confirmed the development in an interview on Monday, saying the arrangement is expected to take effect this January.
The announcement comes amid an ongoing price war in the sector. On Monday, the Nigerian National Petroleum Company Limited (NNPCL) reduced petrol prices to N815 per litre across its Abuja retail outlets. However, this remains N76 higher than the N739 per litre currently sold at Dangote Refinery-backed MRS filling stations.
According to Maigandi, once Dangote Refinery begins direct sales to independent marketers, transport costs of about N15 per litre would bring the final pump price to roughly N750. He explained that the move would significantly narrow the price gap between marketers and make cheaper fuel more accessible to Nigerians.
He noted that direct supply would also ease fuel queues and encourage widespread price reductions as marketers take advantage of the lower landing cost.
Dangote Refinery had, in December, slashed its petrol gantry price from N838 to N699 per litre, setting off aggressive price competition among major fuel suppliers into the new year. While fuel prices currently range between N739 and N900 per litre across the country, many Nigerians are yet to feel the full impact of the reductions.
Marketers believe the planned direct supply could help standardize prices and ease the burden on consumers nationwide.
I cant believe theyre reducing petrol prices again! Will this really benefit us in the long run? Lets discuss.
I cant believe theyre cutting petrol prices again! Will this really benefit consumers or just create more inility?
This petrol price cut could cause inflation to skyrocket. Are we trading short-term relief for long-term economic inility?
This seems like a short-term solution. Will the marketers be able to sustain this price cut in the long run? #PetrolPriceCut
I cant believe theyre actually considering lowering petrol prices. Will this really benefit us in the long run? 🤔
This is great news for our wallets, but will it really benefit the economy in the long run? Lets discuss!