The Dangote Petroleum Refinery has announced a reduction in the price of its Premium Motor Spirit (PMS), also known as petrol, from N990 per litre to N970 per litre. This new price applies to marketers purchasing the product directly from the refinery.
In a statement released on Sunday, Anthony Chiejina, the Group Chief Branding and Communications Officer of the Dangote Group, explained that the price cut was part of the company’s efforts to show appreciation to Nigerians for their support in making the refinery a reality. He also expressed gratitude to the Nigerian government for its backing of the project.
“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.
The refinery, which has ramped up its operations, reassured Nigerians that it would not compromise on the quality of its petroleum products. The company emphasized its commitment to producing high-quality, environmentally friendly, and sustainable fuel. Chiejina further assured that Dangote Refinery is determined to meet and exceed domestic fuel consumption demands, alleviating concerns about supply shortages.
The reduction in fuel prices comes amid growing competition in the Nigerian fuel market following the deregulation of the downstream sector. Marketers have reported that the landing cost of imported petrol now stands at N971 per litre, which has contributed to a decline in retail prices in various parts of the country.
Both independent and major marketers have confirmed that fuel prices have started to drop, thanks to the competition driven by the deregulation.
Chinedu Ukadike, spokesman for the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that the partnership between IPMAN and Dangote Refinery is playing a crucial role in reducing fuel 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,” Ukadike said.
He further noted that independent marketers would no longer have to buy petrol from middlemen but would be able to purchase directly from the producer, which would further drive down prices. Ukadike predicted that the price of petrol could continue to decrease before the end of the year.
A major oil marketer, who requested anonymity, also confirmed the drop in prices, attributing it to the full implementation of deregulation and the subsequent market competition.
“Deregulation is in full swing and competition is the order of the day,” the marketer said, adding that the absence of large price announcements has led to gradual, but noticeable reductions in petrol prices.
While some filling stations are still selling petrol at prices above N1,000 per litre, particularly those operated by larger marketers, the market trend is shifting, with prices steadily moving downward.
