The Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) on Monday said the recent petrol price reduction by the Dangote refinery as well as Monday’s cut by NNPC filling stations will help tame inflation.
The group led by Dr Billy Gillis-Harry, commended the NNPC for reducing its price from N920 to N875 per litre. However, in Lagos, it was learnt that the national oil company cut its price at its filling stations to N860 per litre.
The move by the national oil company further deepened the price war between the mega Dangote refinery and the NNPC’s facility in Warri, which is still operating far below its installed capacity.
Nigerians see the ongoing competition as a win for the downstream market whichhas been under the NNPC monopoly for a long time. NNPC had been the sole importer of products for years in the absence of local refining.
Consumers also fear that if the Dangote refinery eventually runs NNPC out of the retail segment, another monopoly would have emerged in the country.
NNPC’s decision to cut prices comes after the Dangote refinery announced three filling stations, namely MRS, AP and Heyden as its off-takers, which it said will help the company control the reduced prices nationwide.
But describing the price cuts as a bold move, PETROAN said the move is expected to alleviate the financial burden on Nigerians amid rising inflation and praised NNPC for taking proactive steps to support the Nigerian people.
“This price reduction will be a huge relief to many Nigerians struggling to make ends meet,” Gillis-Harry stated.
The reduction in petrol price, he said, is expected to positively impact Nigerians in terms of decreased transportation costs, making it easier for people to commute and transport goods.
“Lower transportation costs will lead to reduced food prices, making it easier for Nigerians to access affordable food,” he added.
Besides, the PETROAN president applauded Dangote refinery for agreeing to refund N65 to retail outlet owners affected by the price reduction.
“This refund initiative follows Dangote Refinery’s recent reduction of its gantry price from N890 per litre to N825 per litre. According to the refinery, customers who purchased PMS at higher rates than the advertised prices from Dangote’s key partners are eligible for a refund.
“The refund amount is N65 per litre on over 200,000 metric tonnes of PMS purchased by marketers at the old gantry price. Dangote has absorbed a N16 billion loss to implement these refunds, demonstrating its commitment to fair pricing and consumer welfare.
“The refund initiative will also positively impact retail outlet owners, who will benefit from reduced prices and refunds. Many retail outlet owners purchased PMS at the higher rate before the price reduction, and the refund will help mitigate their losses.
“We commend Dangote Refinery for this initiative, which will help reduce the financial burden on our members,” said Gillis-Harry, urging Nigerians to be optimistic as government reforms are already yielding results.
Meanwhile, crude production by the Organisation of Petroleum Exporting Countries (OPEC) rose to the highest level in more than a year ahead of the group’s planned supply revival, driven by gains in Iraq, Venezuela and the United Arab Emirates, Bloomberg reported yesterday.
Output increased by 240,000 barrels a day last month to a daily average of 27.35 million barrels, the most since December 2023, according to a Bloomberg survey. Iraqi supply recovered after a fire at its biggest oil field, while Venezuela bolstered exports ahead of tighter US restrictions and the UAE boosted shipments.
The increases mark a relapse for OPEC, whose discipline had improved in recent months as the group and its allies persevered with output curbs aimed at shoring up crude prices.
Led by Saudi Arabia and Russia, the OPEC+ coalition is planning to start a series of modest monthly production increases in April, to gradually bring back supplies shuttered since 2022. But delegates say they’re once again considering delaying the restart, which has already been postponed three times as prices struggle.
Brent futures have retreated more than 10 per cent since mid-January to trade near $73 a barrel in London, as faltering consumption in China and brimming output from the US, Guyana and Canada threaten to create a supply surplus.
With the latest supply gains, OPEC nations are once again collectively pumping several hundred thousand barrels per day above quotas set last year.
Iraq’s production rose by 100,000 barrels a day to 4.16 million per day, as it restored production halted during a fire at the Rumaila oil field in late January, according to the survey.
Also, the UAE raised output by 70,000 barrels a day to 3.3 million a day as its exports reached a three-month high on increased shipments to Japan and China, while Venezuela, which is exempt from OPEC+ quotas, raised production by 80,000 barrels a day to 980,000 — the highest in six years.
