Dangote Refinery Reduces Petrol Price to N970/Litre

 

 

The management of Dangote Petroleum Refinery has declared a drop in the ex-depot price of Premium Motor Spirit, otherwise known as petrol, from N990 per litre to N970 per litre. This, it claimed, was in appreciation of Nigerians and government support for the company’s business operations, saying the gesture became effective with immediate effect, according to a statement issued on Sunday by the refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina.

“This reduction is our own way of showing appreciation to the good people of Nigeria who have continued to support us in our effort towards making the refinery functional,” Chiejina said. He assured that the company would continue to produce the highest quality, safe, and environmentally friendly products while increasing its production to supply the domestic market.
Falling Petrol Prices Nationwide

This comes as pump prices of petrol are starting to spiral down in different parts of the country, driven by stiffening competition in Nigeria’s deregulated downstream. The general secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, attributed the fall in price to a recent agreement reached between IPMAN and Dangote Refinery.

“The mere announcement of our collaboration with Dangote Refinery has already seen prices drop by N10 or N15 in some areas,” Ukadike said. “Independent marketers are buying directly from producers, bypassing middlemen, and creating the necessary competition that is driving down costs. We could see further declines before the close of the year.”

Other stakeholders confirmed the positive signs of deregulation, noting that competition had now taken over and was dictating the direction of price movement.

Disputed Domestic Supply Agreement

Meanwhile, reports of a resolution to supply 28 million litres of PMS daily to the local market for six months have sparked controversy. The agreement, allegedly reached on November 13 between Dangote Refinery, the Nigerian National Petroleum Company Limited (NNPCL), and other stakeholders, was revealed by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).

According to PETROAN, the resolution includes commitments from all domestic refineries to prioritize local fuel supply. The group expressed optimism that the agreement would stabilize prices, improve supply, and boost the Nigerian economy.

NNPC Limited and Dangote Group have since denied there was such a deal. Olufemi Soneye, Chief Communications Officer of the NNPCL, described the claim as “not true”, while Dangote Group’s Anthony Chiejina claimed he didn’t know about the arrangement.

Notwithstanding, the claim of non-existence of the said resolution did not stop the PETROAN spokesperson, Joseph Obele, from insisting that the document detailing the resolution was genuine and re-echoed the need for cooperation to develop Nigeria’s downstream sector.

Ahead of the Tomorrow

With a capacity for 650,000 barrels per day, the Dangote Refinery is potentially a game-changer in Nigeria’s fuel supply chain. Industry analysts are of the view that a deeper collaboration between local refineries and oil marketers could reduce reliance on imports, make prices more stable, and even out the market competition.

As stakeholders argue over this issue, Nigerians appear to have started benefitting from the deregulation of the industry, as fuel prices are gradually starting to fall.