GOOD NEWS! Marketers Drop Exciting Announcement After Dangote Reduced Petrol Price; SEE What Was Announced
Oil marketers affiliated with the Independent Petroleum Marketers Association of Nigeria (IPMAN) are anticipating a significant reduction in the retail price of Premium Motor Spirit (PMS), commonly known as petrol. Reports suggest that prices could drop to approximately N950 per litre in Lagos State, while customers in the Federal Capital Territory (FCT) may see prices around N990 per litre. Chief Chinedu Ukadike, the National Publicity Officer for IPMAN, shared these insights during an interview, emphasizing that the anticipated price adjustments will bring relief to consumers as petrol will now be sold for less than N1, 000 per litre.
Price Adjustments And Market Dynamics
The expected decrease in petrol prices follows a recent decision by Dangote Petroleum Refinery to lower its ex- depot price to N899. 50 per litre. This marks the second price reduction within a month, reflecting a decrease of N71 or approximately seven percent from the previous rate of N970 per litre established on November 24. The price cuts are seen as a strategic move to ease the financial burden on consumers ahead of the holiday season.
In a statement released by Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Group, the company introduced a special petrol pricing initiative aimed at benefiting Nigerians during this festive period. Customers can now purchase an additional litre of fuel on credit for every litre bought outright. The refinery has set the cash price at N899. 50 for two million litres, with a corresponding offer for an additional two million litres available on a bank guarantee valid for 15 days from selected banks.
Holiday Discounts And Consumer Benefits
Chiejina highlighted that this initiative is designed to alleviate transport costs during the holiday season, stating, ” From today, our petrol will be available at N899. 50 per litre at our truck loading gantry or Single Point Mooring (SPM). Furthermore, for every litre purchased on a cash basis, consumers will have the opportunity to buy another litre on credit. ” This approach not only aims to provide immediate financial relief but also encourages consumer spending during a time typically characterized by increased travel and transportation needs.
The Dangote Refinery’ s commitment to delivering high- quality petroleum products at competitive prices is underscored by its operational capacity. With a processing capability of 650, 000 barrels per day, it stands as the largest single- train refinery globally and is positioned to meet Nigeria’ s entire refined petroleum product requirements while maintaining surplus availability for export.
Industry Reactions And Expectations
In light of these developments, IPMAN has expressed optimism regarding the potential retail price reduction. The association had previously urged Dangote Refinery to lower its ex- depot price from N970 per litre, citing that the estimated cost of landing petrol in Nigeria had decreased to N900. 28 per litre. Abubakar Maigandi, IPMAN’ s Chairman, welcomed the new pricing strategy and assured that once marketers begin taking delivery of products at the new rates, retail prices would reflect these changes.
Maigandi remarked on the positive implications of this price adjustment: ” What Dangote has done is what we have been expecting. My marketers are very happy about the reduction. . . We are happy because we know that the masses will enjoy the benefits. ” He also emphasized that transportation costs would likely decrease as a result of this change, which is crucial for economic activities across various sectors.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has also commended Dangote Refinery for its proactive approach in reducing PMS prices. Dr. Billy Gillis- Harry, PETROAN’ s National President, noted that this price cut would significantly alleviate the financial strain on Nigerians during the festive season while also reducing overall living costs.
Gillis- Harry urged the Nigerian National Petroleum Company Limited (NNPCL) to consider adjusting its PMS selling rates to enhance competition within the downstream sector. He stated, ” The reduction in petrol prices by Dangote Refinery has shown that competition can benefit consumers. ” He further advocated for privatizing the Port Harcourt Refinery to foster innovation and improve service delivery in Nigeria’ s petroleum industry.
Challenges And Future Prospects
Despite these positive developments, challenges remain within Nigeria’ s oil sector. Recent reports indicate that NNPCL has struggled to meet its mandate of supplying 385, 000 barrels of crude oil monthly to Dangote Refinery. In December alone, only around 202, 000 barrels were delivered daily, which could impact production levels at Dangote’ s facility moving forward.
As Dangote Refinery ramps up operations with plans to reach full capacity in 2025, it is expected that these dynamics will influence crude trade flows within West Africa significantly. The refinery aims to increase its output to 350, 000 barrels per day during its first operational phase while fully utilizing its monthly allocation from NNPCL.
As Nigeria navigates these changes in its oil market landscape, stakeholders remain hopeful that ongoing adjustments will lead to sustained benefits for consumers. The recent initiatives by Dangote Refinery reflect a commitment not only to competitive pricing but also to ensuring high- quality products are available domestically— ultimately reducing reliance on imported fuels that have historically posed risks to public health and safety.
With continued collaboration among industry players and regulatory bodies, there is potential for significant improvements in both pricing structures and product availability in Nigeria’ s petroleum sector. As consumers prepare for the holiday season amid these changes, it is clear that both immediate relief and long- term strategies are being implemented to foster a more resilient and efficient oil market in Nigeria.
