The Dangote Petroleum Refinery has announced a reduction in the price of its Premium Motor Spirit (PMS) from N990 per litre to N970 per litre. This is the price at which marketers will purchase the product 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 reduction is a gesture of appreciation to Nigerians as the year draws to a close. “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. Additionally, this is to thank the government for their support, as it complements measures aimed at encouraging domestic enterprise for our collective well-being,” the statement read.
Chiejina assured Nigerians that the refinery would maintain high-quality petroleum products that are environmentally friendly and sustainable. “We are determined to keep ramping up production to meet and surpass our domestic fuel consumption, dispelling any fears of a shortfall in supply,” he concluded.
The Major Oil Marketers Association of Nigeria (MOMAN) recently stated that the landing cost of imported petrol is now N971 per litre. Both independent and major marketers have confirmed that petrol prices are gradually decreasing in many parts of the country, due to the competition brought about by the deregulation of the downstream sector.
Chinedu Ukadike, the spokesman for the Independent Petroleum Marketers Association of Nigeria (IPMAN), noted that the agreement between IPMAN and the Dangote Refinery is helping to push down the price of PMS. He said, “By just the announcement that IPMAN and Dangote have met and are ready to transact business, the prices of products have crashed. Prices have dropped by N10 to N15 due to competition. Independent marketers are now buying directly from the producer, which is driving the price down. Before the end of this year, the price will not be as high as what it is now.”
A major oil marketer also confirmed that the price reduction is a result of the deregulation of the downstream oil sector. “Deregulation is in full swing, and competition is now driving the prices down,” the marketer explained, speaking on condition of anonymity.
While petrol prices remain above N1,000 per litre in some stations, the dealer noted, “Last week it was N1,080 in some filling stations. You may not see N900 as a fixed price. Prices can fluctuate, but it’s a positive development.”
