Dangote Refinery Slashes Petrol Price to ₦890/Litre: What It Means for Marketers & Consumers
By DAYO ADESULU
- Dangote Refinery Reduces PMS Price to ₦890/Litre
- Marketers Bear the Brunt as Old Stock Loses Value
- Why Dangote Took This Bold Step Amidst Market Competition
- Consumers Set to Benefit from Cheaper Fuel & Economic Relief
Dangote Refinery Reduces Petrol Price, Sparks Industry Reactions
In a significant move aimed at easing economic pressures, Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS) from ₦950 to ₦890 per litre. The decision, effective from Saturday night, is expected to impact fuel pricing nationwide and intensify competition in the sector.
The Group’s Chief Branding and Communications Officer, Anthony Chiejina, stated that the price adjustment was influenced by favorable global energy trends and a decline in crude oil prices.
“This reduction is a response to market realities and ensures that consumers benefit from international crude oil price changes,” Chiejina said.
Marketers Struggle with Losses from Old Stock
While the price cut is welcomed by consumers, petroleum marketers have expressed concerns over financial losses. Many had purchased fuel at the previous ₦950 rate and are now forced to sell at a loss.
Hammed Fashola, Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), acknowledged both the benefits and downsides of the development.
“For marketers who bought at ₦950, this means incurring losses. But competition forces us to adjust prices quickly, or we risk losing customers,” he explained.
Competition in the Oil Market: A Driving Force
Industry analysts suggest that the move was partly influenced by the threat of fuel importation. Some traders had warned they would import PMS if foreign alternatives remained cheaper than locally refined products.
Fashola confirmed this, saying, “Dangote is reacting to competition. If imported PMS becomes cheaper, local refineries must adjust their pricing. This is the reality of deregulation.”
Will NNPC Lower Its Prices Too?
With Dangote leading the price reduction, questions arise about whether the Nigerian National Petroleum Company Limited (NNPCL) will follow suit.
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), believes NNPC will have to adjust its rates to stay competitive.
“If NNPC wants to remain in business, they will have to lower prices,” he stated.
Positive Impact on Economy & Cost of Living
Economists predict that a lower fuel price will lead to reduced transportation costs, lower inflation, and an overall decrease in the cost of goods and services.
“This move provides economic relief to Nigerians. It reduces household expenses and boosts disposable income,” Gillis-Harry added.
What’s Next?
As the fuel market adjusts to the new pricing, consumers are set to benefit, while marketers navigate the challenges of a competitive and deregulated industry. The coming weeks will reveal how other key players, including NNPC, respond to this price shift.
