The Dangote Petroleum Refinery on Sunday slashed the price of its Premium Motor Spirit from N990 per litre to N970/litre.
According to the company, this amount is what marketers would buy the product from the refinery.
Anthony Chiejina, the Dangote Group’s group chief branding and communications officer, released a statement on Sunday saying the reduction was to appreciate Nigerians as the year ends.
“As the year ends, 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 stated further that 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.
The Major Energies Marketers Association of Nigeria ( MEMAN)said on Friday that the landing cost of imported petrol is now N971/litre.
Recently, both independent and major marketers confirmed that petrol pump prices had started reducing in many parts of the country due to the competition caused by the deregulation of the downstream sector.
The spokesman, the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said the agreement between IPMNAN 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.
“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.”
With additional reports from The Punch