By The Dangote Petroleum Refinery has announced a reduction in the price of Premium Motor Spirit (PMS) from ₦990 per liter to ₦970 per liter.
The PUNCHNg reports that this is the amount marketers would buy the product from the refinery.
In a statement released on Sunday, Anthony Chiejina, the Group Chief Branding and Communications Officer of the Dangote Group, explained that the reduction was a gesture of appreciation to 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.
A fuel attendant fills the tank of a car with fuel for a customer at a Nigerian National Petroleum Company Ltd. (NNPC) gas station in Lagos, Nigeria.
AfrikTimes recalls that the Major Oil Marketers Association of Nigeria said on Friday that the landing cost of imported petrol is now ₦971 per liter. Meanwhile, both independent and major marketers have reported that the pump prices of petrol have started reducing in many parts of the country, largely due to competition driven by the deregulation of the downstream oil sector.
Chinedu Ukadike, the spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the agreement between IPMAN and the Dangote Refinery 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,” Ukadike said.
“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 added.
Vehicles are stuck in long queues due to fuel scarcity.
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 authorization to speak on the matter, stated.
When told that the cost of petrol was still above N1,000 per liter and was N1,070 per liter 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.”
