December 23, (THEWILL) – Following the renewed competition in the downstream sector between the Nigeria National Petroleum Company Limited, NNPCL and Dangote Refinery over the pricing of petrol, the Independent Petroleum Marketers Association of Nigeria (IPMAN), on Sunday said the price of petrol would drop to N935 per litre by Monday (today).
Alhaji Maigandi Garima, IPMAN National President, who made this known on Sunday in Abuja, lauded the Dangote refinery for the development.
Garima said that, “The refinery is running a programme whereby it wants the fuel consumption across the country to be at the same rate. We are expecting the new arrangement to kick-start on Monday. We have been loading from the Dangote refinery and the refinery is saving us in this festive period.”
He said that Dangote Refinery’s new arrangement of loading and pricing by which marketers would pay a fixed ex-depot price of N899.50.
The IPMAN president said previously that it was loading at N970 per litre at Dangote Refinery, but based on the arrangement and promise from Dangote, by Monday fuel price will drop to N935.
IPMAN said the new price regime is coming on the heels of Dangote Refinery’s fuel ex-depot price reduction and uniform price structure, which would enable marketers to sell at N935 in their outlets nationwide.
Even so, the immediate response by the Nigeria National Petroleum Company Limited, NNPCL, on Saturday, three days after Dangote Refinery announced its new price, has sparked a price war that marketers say would bring the price of petrol down and down in the days ahead.
That Saturday, three days after the Dangote Refinery announced its deal, NNPCL reduced the ex-depot price of its petrol to N899 per litre.
Confirming this move by the NNPCL, the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, said it was a ‘significant step’ taken in response to the competitive impact of deregulation in the downstream sector.
National spokesman of the group, Dr Joseph Obele, said that under the new pricing, the NNPC’s ex-depot price is N899 per litre in Lagos and N970 in Warri, Oghara, Port Harcourt, and Calabar.
He said the move between NNPCL and Dangote Refinery is expected to spark a ‘price war’ among oil marketers, ultimately benefiting consumers of petroleum products.
THEWILL recalls that Dangote Refinery last Wednesday announced a reduction from N970 to N899.50 per litre. The management of the world’s largest single-train refinery stated that the price reduction was to ease transport cost during the yuletide and beyond, adding that it had partnered MRS to sell at the new price at the oil company’s retail outlets across the country. The oil company is said to have adjusted its pumps to reflect the new price deal with Dangote Refinery.
However, IPMAN’ s Garima said the ongoing competition in the downstream sector was expected by marketers because of deregulation, adding that it would see the price of fuel dropping continuously as from Monday.
He predicted that soon more refineries will come up and the country will witness increased reduction in the price of petrol in the downstream sector.
“By the time Warri and Kaduna resume production, one can buy products at cheaper rates and it is good for the economy,’’ he added.
According to him, the government’s directive on the Naira for the crude swap deal is a good development for the growth of the economy.
Similarly, President of the Dangote Industries Limited, Aliko Dangote, at the weekend attributed the reduction in prices of petroleum products in the country to the naira-for-crude deal recently reached by stakeholders in the sector and commended President Bola Tinubu for the overall positive impact the deal is having on the Nigerian economy.
He said that the presidential plan has eased pressure on the foreign exchange market and boosted the availability of high-quality petroleum products at lower costs.
The Naira-for-crude deal which started on October 1, 2024 was approved by the Federal Executive Council in September. It led to reduced pressure on the dollar and ensured the stability of the local currency.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
