The Dangote Petroleum Refinery has announced a reduction in the price of Premium Motor Spirit (PMS), also known as petrol, from N990 per litre to N970.
This price adjustment is expected to have a significant impact on the petroleum market, encouraging domestic production and reducing Nigeria’s dependence on imported fuel.
Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Group, stated in a release on Sunday that the price cut is part of the refinery’s effort to appreciate Nigerians and support economic stability as the year draws to a close.
“As the year comes to an end, we see this as a gesture of gratitude to the people of Nigeria who have supported this journey. It also reflects our commitment to partnering with the government to foster economic growth and stability,” said Chiejina.
The announcement comes amidst ongoing deregulation in Nigeria’s downstream oil sector, which has spurred competition among marketers and producers.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the price reduction.
IPMAN spokesman, Chinedu Ukadike, said this development could lead to further price decreases across the country.
“Since Dangote made this announcement, we’ve seen prices decrease by N10 or more in some areas. This is due to competition and the ability of independent marketers to buy directly from producers, cutting out middlemen,” Ukadike explained.
He expressed optimism about additional price reductions in the coming months.
“I believe that before the end of the year, prices will stabilize at lower levels as production ramps up. The collaboration with Dangote Refinery is a game-changer,” he added.
Major oil marketers have also confirmed reductions in pump prices, attributing the trend to deregulation and increased competition within the sector.
A representative of a major marketing company, speaking anonymously, noted that while prices remain above N1,000 in many stations, noticeable reductions are evident.
“Last week, some stations were selling at N1,080. Today, it’s around N1,070. This may not seem significant, but it reflects the impact of competition. Deregulation means prices will fluctuate based on market forces,” the marketer said.
However, while some consumers expect dramatic price drops, the marketer cautioned against unrealistic expectations.
“Consumers should understand that prices depend on various factors, including crude oil costs and exchange rates,” they explained.