Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS), from N950 to N890 per litre.
This move, the refinery states, is in response to favorable developments in the global energy market, particularly the recent drop in international crude oil prices.
The decision aligns with Dangote’s goal of reflecting market realities and offering consumers the benefits of fluctuating global oil prices. This price cut follows an earlier modest price increase in January, which was driven by rising crude oil costs.
The reduction is expected to lower the cost of petrol across Nigeria, which will likely have a positive ripple effect throughout the economy, reducing the prices of goods and services and easing the cost of living for consumers. The refinery also urged marketers to ensure that these benefits are passed on to the public.
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However, the price reduction has created challenges for some marketers. Those who purchased petrol just before the announcement are now forced to sell below cost, leading to significant financial losses.
The Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, acknowledged the negative impact, noting that marketers have to adapt to these changes by reducing prices on existing stock to avoid being left with unsold goods. Despite the losses, he emphasized that the price reduction benefits consumers, leading to cheaper fuel and, ultimately, lower costs across various sectors.
Marketers and stakeholders are closely watching how the Nigerian National Petroleum Company Limited (NNPC) will react to the price changes. Industry experts predict that the NNPC may also be forced to lower its prices to stay competitive.
This price reduction by Dangote Petroleum Refinery is viewed positively by many, including the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), who see it as a significant step towards alleviating the economic pressures on Nigerians and contributing to the broader economic recovery.
