BREAKING: Dangote Refinery Price Cut Poised To Push Petrol Below ₦900/Litre Nationwide — Marketers
Petroleum marketers and fuel retailers have projected a drop in petrol prices to below ₦900 per litre at filling stations across Nigeria, following a fresh price cut by Dangote Refinery.
On Monday, the 650,000-barrel-per-day Dangote Refinery in Lekki, Lagos, introduced a ₦10 refund for customers purchasing premium motor spirit (PMS) at ₦835 per litre.
This development, reported by Naija News, was confirmed by both the National Secretary of the Independent Petroleum Products Marketers Association of Nigeria (IPMAN) and the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, during separate interviews.
The refinery’s recent adjustment in gantry pricing is expected to ripple through retail fuel stations affiliated with Dangote, including MRS, AP (Ardova), Heyden, Optima Energy, Hyde, and Techno Oil, prompting a downward review in pump prices.
As of Monday evening, stations such as MRS were dispensing petrol at ₦910 per litre. However, a staff member at an MRS outlet along the Kubwa Expressway in Abuja informed DAILY POST that this price would likely drop to ₦900 per litre by mid-week.
“We would start selling our petrol at a new price of ₦900 per litre between Wednesday and Thursday,” the staff member, who preferred to remain unnamed, said.
An anonymous source within the Nigerian National Petroleum Company Limited (NNPCL) also hinted that the state oil firm may consider lowering its petrol price to somewhere between ₦880 and ₦900 per litre in the coming days.
This marks at least the third time Dangote Refinery has cut its petrol price since the Federal Government, via NNPCL, renewed a naira-for-crude agreement with the privately owned \$20 billion facility on April 9.
On April 10, the refinery reduced its ex-depot price from ₦880 to ₦865 per litre, followed by a further drop to ₦835, and most recently to ₦825 per litre.
Commenting on the developments, IPMAN National Secretary, James Tor, noted that petrol price fluctuations have become standard practice since Nigeria’s downstream petroleum sector was deregulated.
“Our members are used to price reduction; this is because the prices of premium motor spirits are determined by market forces since we have accepted deregulation of the sector,” he said. “We buy from MRS, NIPCO, NNPC, and others, so if there is a decrease in PMS price at their end, it will cut across.”
Tor also welcomed the collaboration between the NNPCL’s new leadership under Bayo Ojulari and Dangote Group, describing it as a potential stabiliser for Nigeria’s fuel market.
“It will stabilise the downstream petroleum market. It means that the industry will have a sense of direction,” he added.
Meanwhile, PETROAN President, Billy Gillis-Harry, while acknowledging the anticipated drop in pump prices nationwide, expressed concern over the volatility in pricing tied to Dangote’s ongoing reductions.
“The thing is that the constant up-and-down movement of petrol prices really needs to be paid attention to. The stability of the industry is based on consistent prices. I don’t think the Petroleum Industry Act (PIA) is saying we just wake up and see the new price,” he said.
Gillis-Harry suggested the price cuts might be part of a business strategy to dominate the market. However, he emphasised that such moves require strong capital backing.
“Certainly, there will be a change in the prices of PMS across the board. But this is artificial. That is the challenge,” he stated. “We should allow the market forces to determine prices. There is a style of business that is aimed at capturing the market with heavy investment.”
Nonetheless, he expressed support for the NNPCL-Dangote partnership, as long as it enhances national development and energy access.
“PETROAN welcomes the relationship and applauds it, provided it will make Nigeria better and boost the access to energy,” he told DAILY POST.
It should also be noted that just last week, Aliko Dangote and his team visited the new NNPCL management, further solidifying collaboration between the public and private sectors.