Dangote refinery lowers petrol price to N970/litre

The Dangote Petroleum Refinery says it has reduced the price of its Premium Motor Spirit from N990 per litre to N970/litre.

This is the amount marketers would buy the product from the refinery.

In a statement released on Sunday, the Group Chief Branding and Communications Officer of the Dangote Group, Anthony Chiejina, said the reduction was to appreciate Nigerians as the year ends.

“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. In addition, this is to thank the government for their support as this will complement the measures put in place to encourage domestic enterprise for our collective well-being,” the statement read.

Chiejina said the refinery would not compromise on the quality of its petroleum products while assuring Nigerians of the best quality products that are environmentally friendly and sustainable.

“We are determined to keep ramping up production to meet and surpass our domestic fuel consumption; thus, dispelling any fear of a shortfall in supply,” the statement concluded.

Our correspondent recalls that the Major Energies Marketers Association of Nigeria said on Friday that the landing cost of imported petrol is now N971/litre.

Recently, both independent and major marketers confirmed that the pump prices of petrol have started reducing in many parts of Nigeria due to the competition that the deregulation of the downstream sector has caused.

The spokesman of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said the agreement between IPMAN and Dangote is gradually pushing down the price of PMS.

“By just the announcement that IPMAN and Dangote have met and are ready to transact business, the prices of products have crashed. You would have noticed the drop in prices by N10, N15, or so, and this is due to competition.

“Independent marketers are no longer buying from middlemen. We are going to be buying directly from the producer. So, the competition is setting in. I also want to tell you that before the end of this year, the price will not be as high as what you see now.

“You can see how our meeting with Dangote has significantly removed about N10 from the prices of refined petroleum products. It is a good development. We have not even started. Remember I once told you that prices would drop once IPMAN started lifting from Dangote,” Ukadike stated.

Also confirming the drop in prices, a major oil marketer stated that this was due to the deregulation of the downstream oil sector.

“People are not noticing that prices are going down, primarily because there are no big announcements. Deregulation is in full swing and competition is the order of the day,” the major oil marketer, who spoke in confidence due to lack of authorisation to speak on the matter, stated.

When told that the cost of petrol was still above N1,000/litre and was N1,070/litre in filling stations operated by his company, the dealer replied, “Last week it was N1,080 (in some filling stations) if you were observant.

“You may not see N900; that is below cost. Just stop expecting a permanent fixed price. It can come down and it can go up.”

Reacting to the price reduction, marketers described the gesture as a welcome development.

According to IPMAN, the decision by Dangote may be connected with the drop of fuel prices at the international market.

“It is a welcome development. This is the beauty of deregulation. What Nigeria has to do now is to ensure that all refineries are working to ensure total competition, so that fuel prices would be determined by market forces of demand and supply.

“Marketers will also tune down price. Since last week, prices have been coming down to N1,100, N1,040. As the prices are going down from the producers, Independent marketers will just add a little margin to sell to customers. That’s the most important thing,“ IPMAN spokesman, Ukadike, told The Punch.

Recall that a few weeks ago, the President of the Dangote Group, Alhaji Aliko Dangote, and petroleum marketers went up in arms after the former accused them of not patronising his refinery.

The businessman said he had over 500 million litres of petrol but the marketers were not coming to buy it due to their penchant for importing substandard petroleum products.

Reacting, the marketers recalled how many times they made attempts to lift petrol from the refinery without any positive response.

Both IPMAN and PETROAN stated that it was cheaper to import than to buy from Dangote refinery.

PETROAN categorically told our correspondent that it had reached an agreement with international traders to import petrol and sell at prices lower than that of Dangote and the Nigerian National Petroleum Company Limited.

However, the marketers made a U-turn and jettisoned the plan to import fuel into the country having agreed with the 650,000-capacity refinery.

The Federal Government and the Nigerian National Petroleum Company Limited may have sealed a deal with the Dangote refinery for the supply of 28 million litres of the product to the local market daily.

According to a statement by the Petroleum Products Retail Outlets Owners Association of Nigeria, this was based on resolutions reached by operators.