The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that petrol will sell at N935 per litre starting today, following a new pricing arrangement with the Dangote Petroleum Refinery. This development comes after Dangote Refinery reduced its ex-depot price for petrol to N899.50 per litre, allowing marketers to adjust their pump prices.
Price Adjustments and Logistics
The new ex-depot price of N899.50k replaces the previous price of N970 per litre.
Marketers will incur an additional N36 per litre for logistics, resulting in a pump price of N935 per litre nationwide.
Wider Market Competition
The reduction follows intense competition in the downstream sector, particularly between NNPCL and Dangote Refinery.
NNPCL recently slashed its petrol prices by 12%, signaling a broader pricing competition that benefits consumers.
Pump Price Trends
On Sunday, petrol prices in Lagos ranged between N950 and N980 per litre at stations like MRS, BOVAS, and NNPC.
IPMAN has assured that prices will stabilize at N935 per litre in more outlets starting today.
Marketers’ Readiness
Over 30,000 IPMAN members are set to commence petrol loading from the Dangote Refinery and the Port Harcourt Refining Company.
Loading Arrangements
IPMAN members will source products based on proximity to retail outlets.
Dangote’s arrangement is via MRS filling stations, while NNPCL facilitates loading from various depots.
Impact of Deregulation
IPMAN’s National Publicity Officer, Chinedu Ukadike, highlighted the benefits of competition in a deregulated market, emphasizing that it reveals the true cost of PMS production and logistics.
Ukadike stated, “The fight to control market share between NNPCL and Dangote is healthy for Nigerians.”
PETROAN’s Perspective
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has also begun registering its members with MRS filling stations to lift Dangote petrol at the new price.
President’s Remarks
PETROAN President, Billy Gillis-Harry, noted that this arrangement ensures widespread availability and consistent pricing across the country.
He emphasized that the pricing trajectory would remain dynamic, with further reductions expected as competition intensifies.
Dangote Refinery Updates
The Dangote Refinery, currently operating at 85% capacity (550,000 barrels per day), is on track to deliver European-standard products by January.
Edwin Devakumar, head of the refinery, stated, “We aim to compete with European refiners and are progressing towards full capacity.”
The refinery has faced challenges securing sufficient crude locally but remains committed to stabilizing supply.
Looking Ahead
The reduction in petrol prices is expected to:
Boost consumption and alleviate the financial burden on commuters.
Encourage healthy competition in the downstream sector, leading to better pricing for Nigerians.
Strengthen the supply chain through efficient logistics and partnerships.
With assurances from IPMAN and PETROAN of steady supply during the festive period, Nigerians can anticipate greater price stability and improved access to petrol nationwide.
