The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that petrol will now sell at N935 per litre nationwide, effective Monday.
This reduction follows a new pricing and distribution arrangement initiated by the Dangote Refinery, which includes a decrease in the refinery’s fuel ex-depot price.
However, the uniform pricing arrangement is expected to standardize pump prices across the country.
Speaking on Sunday in Abuja, IPMAN National President, Alhaji Maigandi Garima, commended the Dangote Refinery for the initiative, describing it as a major step toward stabilizing fuel prices and ensuring availability across all regions.
The News Agency of Nigeria (NAN) reports that Dangote Refinery has announced a 7.27% reduction in fuel price, lowering it from N970 per litre to N899.50 per litre at its loading gantry.
The company has also introduced generous credit terms for marketers to ease distribution.
To ensure the price cut reaches end consumers, Dangote Refinery has partnered with MRS to sell petrol at N935 per litre through its retail outlets nationwide. “To ensure that this price reduction gets to the end consumer, we have signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre” he added, adding that the new price has already commenced in Lagos, and will be offered nationwide from Monday.
The President of the Dangote Industries Limited, Aliko Dangote, attributed the reduction in prices of petroleum products in the country to the naira-for-crude deal recently reached by stakeholders in the sector and commended President Bola Tinubu for the overall positive impact the deal is having on the Nigerian economy.
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The price reduction, aimed at alleviating transportation costs during the festive season and beyond, has already commenced in Lagos and will roll out nationwide from Monday.
“The new arrangement allows marketers to pay a fixed ex-depot price of N899.50 per litre,” a statement from the refinery explained.
The IPMAN National President lauded the initiative, noting that the ex-depot price reduction would make petrol more affordable across the country.
“Previously, we loaded at N970 per litre, but with Dangote’s new pricing arrangement, fuel will be sold at N935 per litre from Monday,” he said.
Meanwhile, NNPCL’s recently rehabilitated Port Harcourt refinery first began selling at N1,045 per litre (ex-depot), before it reduced to N1,030, and then N1,020 per litre before the latest reduction to N899 per litre.
He attributed the ongoing competition in the downstream sector to deregulation, predicting further reductions in fuel prices as more private refineries enter the market.
“More refineries are coming, and we will continue to see price drops in the sector. This is why we have advocated for private sector participation in refinery operations,” he added.
Recalling the challenges of 2023, he noted that fuel prices soared to N2,000 per litre in parts of the North and East due to reliance on imported fuel.
However, with local refineries now operational, prices have stabilized, with the highest in those regions currently pegged at N1,100 per litre.
PETROAN, in a statement signed by its national spokesman, Dr Joseph Obele, stated that under the new pricing, the NNPC’s ex-depot price is N899 per litre in Lagos and N970 in Warri, Oghara, Port Harcourt, and Calabar.
According to the group of petrol retailers, the move is expected to spark a ‘price war’ among oil marketers, ultimately benefiting consumers of petroleum products.
“The company (NNPC) recently reduced the ex-depot price of petrol from N1,020 to N899 per litre, a move that has been commended by PETROAN. PETROAN hails the NNPC for responding to the call for affordable Premium Motor Spirit (PMS) prices.
“A document released by NNPC’s commercial department indicates a reduction based on regional pricing scheme as: Lagos: 899.0; Warri: 970.0; Oghara: 970.0; PH: 970.0 and Calabar 970.0,” it added.
Describing the price reduction as a welcome development that will bring relief to motorists and Nigerians during the holiday season, the Chairman of PETROAN, Dr Billy Gillis-Harry said it was a demonstration of the NNPCL’s commitment to making petroleum products more affordable for Nigerians.
With the price reduction, he said there will be a cut in transportation costs, motorists will spend less on fuel, and there will be increased disposable income as well as a rise in economic activities.
“Lower fuel prices will stimulate economic growth by reducing production costs and increasing demand for goods and services. The price reduction will lead to a decrease in the cost of living, enabling Nigerians to afford necessities and enjoy a better quality of life,” Gillis-Harry argued.
The IPMAN president expressed optimism that once refineries in Warri and Kaduna resume production, fuel prices will drop further, benefiting the economy.
He also praised the crude-for-Naira swap deal, describing it as a positive step for economic growth.
Dangote also called on other oil marketers such as the NNPC Retail and all other marketers to work with the private refinery to ensure that Nigerians enjoy high-quality petrol at discounted prices.
“The Dangote refinery is for the benefit of Nigeria and Nigerians. We will therefore continue to work with various value chain players to deliver high-quality petrol at cheaper prices. Our aim is for all Nigerians to have ready access to high-quality petroleum products that are good for their vehicles, good for their health, and good for their pockets,” Dangote explained.
