By Ameenat Hamzat, Lagos, Nigeria
The Independent Petroleum Marketers Association of Nigeria (IPMAN), has announced a reduction in petrol prices to N935 per litre, effective from Monday (today).
This follows a new pricing arrangement the association reached with Dangote Petroleum Refinery.
According to IPMAN’s National President, Maigandi Garima, Dangote Refinery reduced its ex-depot price for petrol to N899.50 per litre, aiming to standardise the product’s retail price at N935 across all outlets nationwide.
“Dangote Refinery has introduced a new arrangement for loading and pricing, where marketers will pay a fixed ex-depot price of N899.50.
“The refinery is implementing a program to ensure uniform fuel consumption rates nationwide. Previously, the loading price was N970 per litre, but from Monday, petrol prices will drop to N935,” Garima stated.
The association also disclosed that over 30,000 of its members are set to begin loading petrol from Dangote Refinery and the Port Harcourt Refining Company, following the ex-depot price reduction.
Competition Heats Up Between Dangote Refinery and NNPCL
The reduction in petrol prices comes amid intensified competition between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL).
Over the weekend, NNPCL slashed its petrol prices by 12%, aligning closely with Dangote’s new pricing.
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) confirmed the price war in an exclusive interview with The Punch, noting its potential benefits for Nigerians.
PETROAN President, Billy Gillis-Harry, stated, “For us, the reduced price remains a welcome development as that is the beauty of a deregulated sector. When there are multiple sources of petroleum products, competition drives production and pricing, benefiting commuters who wish for lower prices.”
He further noted that the competition to control market share between NNPCL and Dangote would reveal the actual cost of Premium Motor Spirit (PMS) production and logistics, helping marketers improve their retailing capacity and increase volumes.
Potential Price Reduction and Retail Adjustments
IPMAN National Publicity Officer, Chinedu Ukadike, emphasized that marketers would now patronize both refineries based on their location and logistics costs.
“We would pick our products from both refineries, but the most important factor remains proximity to retail outlets,” Ukadike explained.
He also assured Nigerians that filling stations owned by IPMAN members would remain open during the festive season to prevent artificial scarcity.
Meanwhile, Dangote Refinery announced it is now operating at 85% capacity and on track to deliver European-standard products by January. “We have reached 550,000 barrels per day, which is 85% capacity in crude distillation,” said Edwin Devakumar, Head of Dangote Refinery, in an interview with CNBC Africa.
The 650,000-bpd Dangote Refinery, built by Nigerian billionaire Aliko Dangote, aims to compete with European refiners at full capacity but has faced challenges in sourcing sufficient crude locally.
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