The Dangote Petroleum Refinery has announced a reduction in the price of its Premium Motor Spirit (PMS), commonly known as petrol, from N990 per litre to N970 per litre.
This new price reflects what marketers will pay when purchasing directly from the refinery.
In a statement released on Sunday, Anthony Chiejina, the Group Chief Branding and Communications Officer of the Dangote Group, said the reduction is a gesture of appreciation to Nigerians as the year comes to an end.
“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,” Chiejina stated.
He also assured Nigerians that the refinery remains committed to delivering high-quality, environmentally friendly, and sustainable petroleum products.
“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.
The PUNCH reports that the Major Energies Marketers Association of Nigeria recently disclosed that the landing cost of imported petrol currently stands at N971 per litre.
This reduction in price aligns with ongoing trends in the downstream sector, where both independent and major marketers have confirmed a gradual decline in pump prices due to increased competition following the deregulation of the sector.
Chinedu Ukadike, the spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted the positive impact of their collaboration with the Dangote Refinery, which has started to drive down fuel prices.
“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,” Ukadike explained.
He further noted that the agreement between IPMAN and Dangote had already reduced prices by about N10 per litre, with greater reductions expected as direct transactions increase.
A major oil marketer also confirmed the reduction, attributing it to the full deregulation of the sector, which has introduced market competition.
“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 marketer said, speaking anonymously due to a lack of authorization.
However, the marketer clarified that while pump prices might vary, they had already dropped from last week’s rates.
“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,” the dealer added.
The gradual reduction in fuel prices signals a significant shift in the Nigerian petroleum market as competition and direct procurement reshape pricing trends.
