Petroleum marketers and retailers said Dangote Refinery’s latest premium motor spirit ex-depot price reduction on Monday would lead to a retail price drop across filling stations nationwide.
DAILY POST reports that on Monday, the 650,000 barrels per day refinery based in Lekki, Lagos State, offered customers a N10 refund on PMS bought at N835 per litre.
The N10 refund was confirmed by the National Secretary of the Independent Petroleum Products Marketers Association of Nigeria and the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, on Monday in separate interviews.
The latest drop in gantry price of Dangote petrol implies that the refinery’s partnering filling stations, such as MRS, AP (Ardova), Heyden, Optima Energy, Hyde, and Techno Oil filling stations, would adjust their petrol pumps in the coming days.
DAILY POST gathered that MRS and other partnering filling stations with Dangote Refinery currently sell their petrol at N910 per litre as of Monday evening.
A staff member of MRS fillings along Kubwa Expressway, Abuja, told DAILY POST correspondent that the petrol outlet would review downward its fuel pump at N900 per litre between Wednesday and Thursday this week.
“We would start selling our petrol at a new price of N900 per litre between Wednesday and Thursday,”;; he told DAILY POST anonymously.
An impeccable source at NNPCL, who preferred anonymity said the state-owned firm may further relax its petrol price to around N880 or N900 per litre in the coming days.
Efforts to contact Dangote Group’s spokesperson, Anthony Chiejiena to speak on the fresh petrol price review were unsuccessful as of the time of filing the report.
Meanwhile, DAILY POST reports Dangote Refinery has reduced its petrol price at least three times since the Federal Government, through the Nigerian National Petroleum Company Limited, renewed its naira-for-crude deal with the $20 billion refinery on April 9.
On April 10, the refinery to N865 per litre from N880.
Days after, Dangote Refinery announced from N865.
Thereafter, the refinery’s latest price dropped to N825.
Reacting, IPMAN National Secretary, James Tor said the petrol price reviews have become common following the deregulation of the country’s downstream petroleum sector.
According to him, a reduction in Dangote refinery petrol prices is most likely to have a ripple effect across the market.
“Our members are used to price reduction; this is because the prices of premium motor spirits are determined by market forces since we have accepted deregulation of the sector.
“We buy from MRS, NIPCO, NNPC, and others, so if there is a decrease in PMS price at their end, it will cut across,”;; he told DAILY POST.
Speaking on the partnership between NNPCL’s new management, led by Bayo Ojulari, and the Dangote Group, he said it would stabilise the country’s petrol market.
“It will stabilise the downstream petroleum market. It means that the industry will have a sense of direction,”;; he added.
Also, PETROAN’s president, Gillis-Harry, lamented the continued petrol price instability as a result of Dangote Refinery’s incessant price cuts.
Meanwhile, he said the petrol price would be reviewed downwards across the board in response to Dangote Refinery’s latest price cut.
“The thing is that the constant up-and-down movement of petrol prices really needs to be paid attention to.
“The stability of the industry is based on consistent prices. I don’t think the Petroleum Industry Act (PIA) is saying we just wake up and see the new price.
“Probably, it is a strategy to have the biggest market share. Even at that, there must be capital to be able to buy products.
“Certainly, there will be a change in the prices of PMS across the board. But this is artificial. That is the challenge.
“We should allow the market forces to determine prices. There is a style of business that is aimed at capturing the market with heavy investment.
“PETROAN welcomes the relationship and applauds it, provided it will make Nigeria better and boost the access to energy,”;; he told DAILY POST.
The development comes as the price of Brent and WTI crude blends fell to $64.72 and $61.72 as of 3:47 am on Tuesday morning, according to oilprice.com.
Recall that last week, Dangote Group president, Aliko Dangote and his team
