Oil marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) have announced a reduction in the price of Premium Motor Spirit (PMS), also known as petrol, to N935 per litre starting from Monday.
This price drop follows a new pricing arrangement introduced by Dangote Refinery, which has lowered its fuel ex-depot price and implemented a uniform pricing system nationwide.
Reports reveal that Dangote Refinery reduced its petrol price to N899.50 per litre on Thursday, providing a significant relief to Nigerians just in time for the holiday season.
Alhaji Maigandi Garima, the National President of IPMAN, confirmed that the price cut results from the Dangote Refinery’s decision to reduce its ex-depot price.
“Dangote Refinery has introduced a new pricing and loading system, where marketers will pay a fixed ex-depot price of N899.50 per litre,” Garima said in an interview with the News Agency of Nigeria (NAN) on Sunday.
He added that the refinery aims to ensure uniform fuel pricing across the country, and the new arrangement will take effect on Monday.
“We’ve been loading from the Dangote Refinery, and it has been of immense help during this festive period,” he stated.
Garima also emphasized that the ongoing competition within the downstream sector, which was spurred by the deregulation of the petroleum industry, is expected to lead to further reductions in fuel prices.
Reflecting on the challenges of the previous year, he recalled that during the 2023 holiday season, petrol prices surged to N2,000 per litre in certain areas due to fuel scarcity.
However, with Dangote Refinery and other private refineries now operational, fuel prices have significantly dropped.
The highest petrol price in the Northern and Eastern regions is currently N1,100 per litre, according to Garima.
He also praised the Nigerian National Petroleum Company (NNPC) Ltd. for reducing its ex-depot price from N1,020 to N899 per litre, a move he believes is in response to deregulation and increased industry competition.
Garima concluded by stating that the resumption of operations at the Warri and Kaduna refineries would likely lead to even lower fuel prices, which would ultimately benefit the economy.