The Dangote Petroleum Refinery recently announced a reduction in the ex-depot price of Premium Motor Spirit (PMS) from N970 per litre to N899.50 per litre. However, the anticipated drop in pump prices has yet to materialize, with most gas stations across Nigeria maintaining higher prices.
Despite the price cut, large oil marketers continue to sell petrol at rates as high as N1,070 per litre, while independent marketers offer it for N1,100 per litre. Meanwhile, the Nigerian National Petroleum Company Limited (NNPCL) stations maintain a minimum price of N1,025 per litre in Lagos and other locations.
Maxi Colman Obasi, National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), commended Dangote Refinery for the price reduction. He urged marketers to pass the benefits to consumers.
An industry expert who requested anonymity highlighted the impact of market deregulation and falling crude oil prices, noting, “Crude oil has dropped from $73 to $72 per barrel, reducing refiners’ costs. These changes should reflect in lower petrol prices.”
Dangote Refinery’s Holiday Initiative
In announcing the price cut, Dangote Refinery expressed its commitment to alleviating transport costs during the festive season. The company introduced a holiday discount, setting the ex-depot price at N899.50 per litre with an innovative offer: consumers purchasing petrol on a cash basis can access an additional litre on credit, guaranteed by major banks like Access Bank, First Bank, or Zenith Bank.
Anthony Chiejina, Chief Branding and Communications Officer of Dangote Group, emphasized the company’s dedication to providing high-quality petroleum products at competitive prices. He also noted that the refinery’s operations signify a turning point, ending Nigeria’s reliance on substandard, blended imports that harm health, machinery, and the environment.
While Dangote Refinery’s price cut is a step toward easing fuel costs, the onus is now on oil marketers to ensure these benefits reach consumers. As Nigerians prepare for the holidays, the hope remains that pump prices will soon reflect the refinery’s efforts.
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